Key Takeaways:
- South Korea’s Financial Services Commission plans to submit stablecoin regulation in October.
- The bill will cover issuance rules, collateral management, and risk controls.
- Major banks may meet USDC issuer Circle’s president to discuss collaboration.
South Korea to Introduce Stablecoin Regulation Bill
South Korea is on its way to establishing official regulations for stablecoins as the Financial Services Commission (FSC) is poised to file a draft legislation in October. Reporting from the local news outlet MoneyToday, ruling party lawmaker Park Min-kyu said the FSC has completed a plan for a legal framework concerning stablecoins.
Such a bill would specify the regulations for the issuance of stablecoins and the management of collateral, and would also require the setting up of internal risk control5 systems. This is expected to be a supplement to the country’s second digital asset legal framework, which is currently at the stage of development. This action is in line with President Lee Jae Myung’s vision to foster a vibrant local currency-pegged stablecoin market that would not only deepen South Korea’s monetary sovereignty but also make it a key player in the digital finance era.
Banks and Industry Collaboration
Executives from the largest internetz companies in the country, Naver and Kakao, and the biggest banks, took part in discussions about how stablecoin could be adopted and regulated. Attendees highlighted that a collaborative ecosystem between payment providers and banks is crucial for such a venture as it can help in achieving the goals of innovation, interoperability, and risk mitigation.
Top South Korean banks, KB Kookmin, Woori, Shinhan, and Hana are looking into the possibility of a joint meeting with USDC issuer Circle president Heath Tarbert6 to be held during his next visit. Such a meeting would open the doors to forming collaborations as well as receiving advice on how to implement stablecoin programs that are in line with the regulations.
Japan, which is next door, is going to the same direction with its stablecoin projects, fintech company JPYC has a plan to release a yen-backed stablecoin in the near future, both facts demonstrating the area’s increased8 interest in digital money.
Summary:
South Korea’s FSC aims to submit a stablecoin regulation bill in October, establishing issuance, collateral, and risk management rules. Major banks are exploring collaboration with Circle, signaling strong support for regulated stablecoin adoption and digital payment innovation in the country.
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