On October 8, South Korea‘s Ministry of Strategy and Finance announced plans to tighten regulations on stablecoins due to concerns over their growing role in foreign exchange markets and insufficient oversight.
The Financial Services Commission (FSC) will prioritize stablecoin regulation in the next phase of the Virtual Asset User Protection Act (VAUPA), drawing on examples from Japan and the EU.
Globally, stablecoins like Tether have gained prominence, prompting South Korea to apply foreign exchange rules and develop a system for won-pegged stablecoins.
The country is also easing restrictions on corporations holding virtual asset accounts and including stablecoin transactions in official statistics.
The VAUPA, introduced earlier, mandates crypto exchanges to pay supervisory fees, store 80% of user assets in cold storage, and review non-compliant assets.
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