$KAIA Jumps After South Korea Pledges Stablecoin-Friendly Bill

KAIA, the token of the merged Klaytn and Finschia blockchain, rose over 20% today, 11 June, following a new regulation-friendly proposal in South Korea that will benefit stablecoins .

The country’s new Digital Asset Basic Act could legalize won-pegged stablecoins and open the door for local firms in South Korea to issue under new rules – news welcomed by Kaia who have a planned KRW-pegged stablecoin in the works.

New bill offers legal clarity for stablecoin issuance

On 10 June, the administration of President Lee Jae-myung of South Korea proposed the Digital Asset Basic Act that would allow companies with more than 500 million won in equity (about $368,000) to issue stablecoins, provided they maintain adequate reserves.

The move comes as the country seeks to expand its digital asset sector while avoiding past pitfalls like the collapse of TerraUSD in 2022.

With a good number of Korea’s population involved in crypto trading, the bill could reshape the country’s regulatory approach. This signals a clearer path to stablecoin integration in favor of local projects like Kaia.

Kaia positions itself ahead of the policy shift

On 9 June, Kaia Foundation chairman Sangmin Seo announced plans to support a Korean-won stablecoin on the Kaia network. In a post on X, Seo stated: “Kaia’s Stablecoin Summer is just beginning.”

The timing of the statement now appears strategic, as Kaia could be among the first to benefit from the bill.

The network recently added support for native USDT, expanding its stablecoin options. 

However, according to data from DefiLlama, Kaia’s stablecoin market cap has declined from over $150million to around $40m, but the new legislation may help reverse this trend and boost on-chain activity.

Kaia was formed in 2024 from the merger of Klaytn and Finschia, blockchain projects backed by South Korea’s Kakao and LINE, respectively, to create a scalable, consumer-ready Layer-1 network. The recent policy shift has boosted KAIA’s token price and pushed up Kakao’s stock.

Market reacts with strong technical breakout

Following the chairman’s announcement, KAIA’s price broke above both its 50-day and 200-day moving averages. According to TradingView chart, it climbed from $0.1068 to $0.1444, a 35% intraday gain. At the time of writing, the token trades around $0.16, reflecting a 14% gain over the last 24 hours.

Volume rose sharply alongside price, confirming real buying pressure. On-chain indicators also turned bullish . The Chaikin Money Flow (CMF) hit 0.37, suggesting notable capital inflows and increased investor interest.

Also, the TradingView chart showed the Kakao stock spiking by over 20% on 9 June but dropping by over 2% at the end of business on 10 June. 

How Korea’s stablecoin push stacks up against the US

South Korea’s Digital Asset Basic Act would let local companies issue stablecoins if they meet certain capital and reserve requirements, which is a major step toward regulation in the country and mirrors a broader global trend.

In the US, lawmakers are working on the GENIUS Act, which takes a stricter approach. It proposes that only regulated financial institutions can issue stablecoins, with tight rules on reserves and disclosures.

The main difference? Korea is opening issuance to more players, while the US is being more cautious. However, both countries now see stablecoins as a key part of the future of crypto.

Outlook

The KAIA rally we are seeing indicates investor optimism around local policy shifts and Kaia’s positioning in the stablecoin race.

With legal clarity now emerging, attention will shift to execution, and if Kaia successfully launches a Korean-won stablecoin under the new rules, it could gain a significant market share and momentum in South Korea’s growing digital economy.