Bank of Korea Plans Active Role in Stablecoin Regulation Development
The Bank of Korea aims to influence government regulations on cryptocurrency, focusing on stablecoin usage in its “2024 Payment and Settlement Report.” This follows the South Korea Financial Services Commission's plans to draft a second crypto law later this year.
Key Points from the Bank of Korea
- The bank emphasizes the need for a regulatory framework for stablecoins to mitigate monetary and financial risks.
- Stablecoins could negatively impact monetary policies if adopted as a payment method.
- The bank questions the stability of stablecoins, citing potential volatility and associated risks.
New Regulatory Developments
- South Korea introduced a cryptocurrency regulation law in July 2024, tightening rules for exchanges.
- The government plans to establish a legal framework for stablecoins, clarifying token listings and addressing regulatory gaps.
- Financial authorities will sanction overseas crypto exchanges operating without licenses.
South Korea is becoming increasingly significant in cryptocurrency regulation, adapting to global market shifts.