While Bitcoin and Ethereum are preparing to finish the year without any major swings within the range they traded almost all of December, South Korea is expected to introduce strict requirements for stablecoin issuers.

According to media reports, consideration of the matter has been postponed until next year. Authorities still cannot agree on which organizations should be allowed to issue these assets. According to a Yonhap report, a bill proposed by the Financial Services Commission, titled the "Foundations of Digital Assets," would require stablecoin issuers to hold reserve assets in bank deposits or government bonds. The proposal would also oblige issuers to transfer 100% of their outstanding reserve assets to custodians such as banks. With this measure, South Korea aims to prevent the spread of risks from a stablecoin issuer's bankruptcy to investors.

Discussions concern not only reserve structures but also the types of institutions that would be permitted to issue stablecoins. Options under consideration include allowing only banks to issue them or permitting other financial institutions that meet certain criteria. Experts say strict requirements for stablecoin issuers in South Korea are driven by a desire to protect investors and ensure financial system stability in light of crypto-market shocks caused by the collapse of some algorithmic stablecoins.

Tight stablecoin regulation could significantly affect South Korea's crypto market. On one hand, it could boost confidence in digital assets and encourage wider adoption among institutional investors. On the other hand, strict constraints could stifle innovation and limit competition, potentially reducing interest in the crypto market.

The proposal also provides that digital asset service providers would be required to disclose information, comply with service terms and advertising standards comparable to those applied in traditional finance. In addition, in case of hacks or system failures, providers could be held liable for damages regardless of fault, similar to existing rules for online retailers.

Trading recommendations

Bitcoin technicals

Buyers are currently targeting a return to $89,630, which opens a direct path to $91,300 and then $93,200. The farthest target is the high near $95,000; breaking that would signal attempts to return to a bull market. In case of a decline, buyers are expected at $87,400. A drop below that area could quickly push BTC toward $85,500. The farthest downside target is $83,500.

Ethereum technicals

A clear hold above $2,997 opens a direct path to $3,105. The farthest target is the high near $3,233; surpassing it would indicate strengthening bullish sentiment and renewed buyer interest. In case of a decline, buyers are expected at $2,887. A drop below that area could quickly push ETH toward $2,763. The farthest downside target is $2,684.

What's on the chart

• The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.