The central bank of South Korea has outlined new requirements for stablecoin issuance, emphasizing strict control by commercial banks.
New Requirements for Stablecoins
Deputy Governor of the Bank of Korea, Ryoo Sang-dai, stated that the issuance of won-based stablecoins must start exclusively with commercial banks. He remarked, "It is desirable to first allow banks, which are under a high level of regulations, to issue won-based stablecoins and gradually expand to the non-bank sector with the experience."
Role of Government in Regulation
South Korea's President, Lee Jae Myung, during his campaign promised to create conditions for companies to issue stablecoins. This promise is now being turned into law, with the ruling party proposing legislation to create a comprehensive regulatory framework.
Future Plans and Risks
Ryoo also highlighted the risks associated with rising housing prices and increasing household debt. The central bank is conducting a second pilot test of its central bank digital currency (CBDC) in collaboration with commercial banks, depending on how the administration's digital policy develops.
The central bank of South Korea insists on caution regarding stablecoins, aiming to avoid uncertainty in the financial market and protect users.
