Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The South Korean government intends to implement currency regulation guidelines for stablecoin transactions. This initiative seeks to enhance oversight of digital assets in accordance with global standards.
The Ministry of Economy and Finance in South Korea is evaluating strategies to ensure the dependability of stablecoin transactions. As reported by local media, officials are contemplating the introduction of new regulatory measures due to the increasing use of stablecoins for cross-border transfers.
A representative from the Ministry indicated that the capabilities of stablecoins are broadening, leading to their frequent use as a payment method in the real economy. Consequently, the government must adopt a regulatory framework for stablecoin transactions akin to that applied to foreign currency dealings.
Related Posts
Additionally, the Financial Services Commission (FSC) of South Korea plans to conduct a series of discussions with financial market regulators from Japan and the European Union. The objective will be to align regulatory approaches to stablecoins across various jurisdictions.
Regulation of the stablecoin market in South Korea will mainly impact stablecoins linked to the Korean won. Authorities aim to create a framework for issuing coins associated with the national currency, which will serve as a basis for regulating tokens tied to foreign currencies. The Ministry of Economy and Finance is particularly focused on stablecoins pegged to the U.S. dollar, as they believe their usage adversely affects the nation’s monetary sovereignty.
As per analysts from CryptoProcessing.com, stablecoins represent a substantial and increasing portion of the overall volume of crypto transactions. In January 2023, they constituted 66%, rising to 78% by December of the same year. On average, stablecoins accounted for 73% of the total volume of crypto transactions in 2023. Data from Visa’s tracker indicates that the volume of stablecoin transactions reached $1.6 trillion between September 8 and October 8, 2024.
The South Korean authorities have been formulating regulatory standards for the cryptocurrency market since 2022. During the past two and a half years, they have established stringent requirements for local crypto firms and digital asset service providers, implemented a crypto tracking system, passed legislation concerning cryptocurrencies, and the Korea Financial Intelligence Unit (KoFIU) has intensified scrutiny of local crypto exchanges. Furthermore, South Koreans are prohibited from using credit cards to purchase digital assets on foreign crypto exchanges.
Сообщение South Korea to Tighten Oversight on Stablecoins появились сначала на CoinsPaid Media.
