Asian countries are actively adapting their regulatory approaches to stablecoins, closely monitoring changes in US policy. The passage of the GENIUS Act has spurred new legislative initiatives in the region.
Regulatory Situation of Stablecoins in Korea
In South Korea, a struggle for control over stablecoin issuance has emerged. The ruling party proposed the Digital Asset Basic Act on June 10, opening a path for local firms to issue won-backed stablecoins. This has raised alarms at the Bank of Korea.
Ryoo Sangdai, the bank's senior deputy governor, warned that stablecoins could interfere with capital policies and hinder the internationalization of the won. Governor Rhee Chang Yong went further, stating that unstable stablecoins could repeat historical mistakes when private firms issued their own currency in the 1800s.
Hong Kong in Focus: New Opportunities for Stablecoins
Hong Kong is actively promoting its initiatives for the development of stablecoins. The Hong Kong Monetary Authority emphasizes that stablecoins should demonstrate real value. Clara Chiu, founder of QReg Advisory, noted that many firms applying for stablecoin issuance are already using the yuan in international payments.
Hong Kong aims to be a testing ground for larger-scale financial instruments linked to the Chinese currency. While China maintains a ban on crypto trading, some shifts are occurring behind the scenes.
The Future of Stablecoins in Asia and Their Impact on the Global Market
Statistical data confirms the importance of stablecoins. Currently, dollar-backed stablecoins account for $256 billion of the global market, while euro-pegged stablecoins only total $403 million. South Koreans traded over $41 billion worth of USDT, USDC, and USDS in the first quarter of 2023. However, market participants are paying attention not only to the dollar but also to the potential emergence of stablecoins from other countries for improving settlements and direct conversions.
Regulators in Asia are at a crossroads between the need to adapt to global changes and the desire to maintain financial stability. The development of stablecoins plays a key role in this process.
