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South Korean Central Bank Urges Parliament to Regulate USD Stablecoins Ahead of Circle Representative's Visit to Korea
Summary: According to reports, the Bank of Korea (referred to as 'BOK') is urging parliament to strengthen regulation of USD stablecoins, citing their widespread adoption as a threat to South Korea's monetary sovereignty. Notably, this call comes as representatives from Circle, the major issuer of USD stablecoin USDC, are set to hold a series of meetings ...
According to reports, the Bank of Korea (referred to as 'BOK') is urging parliament to strengthen regulation of USD stablecoins, citing their widespread adoption as a threat to South Korea's monetary sovereignty. Notably, this call comes as representatives from Circle, the major issuer of USD stablecoin USDC, are set to hold a series of meetings with senior executives of South Korean commercial banks. BOK emphasized the urgent need for the government and parliament to revise relevant laws such as the Foreign Exchange Transactions Act. The central bank is particularly concerned that the proliferation of USD stablecoins could lead to 'currency substitution,' negatively impacting the effectiveness of monetary policy and monetary sovereignty. Additionally, BOK warned that USD outflows through stablecoins could exacerbate instability in the foreign exchange market.
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Link: South Korean Central Bank Urges Parliament to Regulate USD Stablecoins Ahead of Circle Representative's Visit to Korea [Copy]
