South Korea to tighten control over stablecoins
Date: 2025-04-22 Author: Oliver Abernathy Categories: IN WORLD
The Central Bank of South Korea (BoK) announced its intention to take an active part in the development of a legal framework for regulating stablecoins. The published report emphasizes that such assets, unlike other cryptocurrencies, can act as means of payment, and their widespread use can weaken the effectiveness of the country's monetary policy.
The regulator notes that stablecoins have the potential to transfer risks characteristic of the cryptocurrency market to the traditional financial system (TradFi), which requires immediate attention from the authorities. Of particular concern is the possibility of such assets affecting monetary stability in the event of their large-scale use.
South Korea is currently in the second stage of legislative reform in the field of digital assets. The first phase ended with the law coming into force in July 2024, which was aimed at protecting investors' rights and establishing stricter rules for cryptocurrency exchanges.
The upcoming legislative changes, according to BoK, will focus on regulating stablecoins, classifying service providers in the crypto sphere, and ensuring transparency in the listing of tokens and disclosure of information about them. The regulator considers these measures necessary to maintain market stability and trust among participants.
According to the Central Bank, by December 2024, the number of registered crypto investors in the country exceeded 18 million people, which is more than a third of the population. At the same time, the daily trading volume on the five leading crypto platforms reached an impressive $ 12.1 billion.
Earlier, in March 2025, the Financial Intelligence Unit of the Financial Services Commission of South Korea took measures to restrict access to 17 foreign crypto exchanges by blocking them from the Google Play app store. The move is part of a broader strategy to control the activities of unregistered platforms in the domestic market.
South Korea is demonstrating its determination to implement comprehensive regulations aimed at reducing the threats associated with the development of digital assets and their integration into the country's economy.
