Sharp Decline in South Korea's Kakao Pay Shares, Concerns Over Stablecoin Regulation Loom

On the 27th, South Korea's Kakao Pay shares, which had surged in the past two weeks due to investor expectations for entering the stablecoin market, fell by as much as 17% after a one-day trading suspension was lifted. According to Bloomberg, the Korean exchange had designated the stock as an 'investment risk' and halted trading on Thursday. Kakao Pay shares were also suspended from trading on Tuesday of this week, after having risen about 50% in the previous two business days. The stock had more than doubled in value over the past month due to strong interest in cryptocurrencies among Korean investors, but regulatory authorities have expressed concerns. This movement in the Korean market appears to have impacted the shares of Circle in the United States, which fell by 15.54% compared to the previous day.