The Central Bank of Korea will actively participate in the formulation of stablecoin regulations.

[The Bank of Korea will actively participate in the formulation of stablecoin regulations] The Bank of Korea stated that it will actively participate in the formulation of stablecoin regulations to mitigate potential risks to monetary and financial stability. South Korea is drafting the second part of its Crypto Assets legislation, which will focus on the transparency requirements for stablecoins and encryption services. The Bank of Korea stated in a payment system report on Monday: "Unlike general virtual assets, stablecoins inherently possess the characteristics of a means of payment. If their use expands, it may undermine the effectiveness of monetary policy." The Bank of Korea also pointed out that stablecoins could transmit the risks associated with cryptocurrency-related crises to traditional financial markets, threatening financial stability and the integrity of payment and settlement systems. South Korea is currently developing the follow-up legal framework for its first cryptocurrency law. The law will come into effect in July 2024, focusing on protecting cryptocurrency investors by imposing stricter requirements on exchanges.