Ahn Chang-guk, Standing Commissioner of the Financial Services Commission: "Stablecoins pose foreign exchange and money laundering risks…must prevent regulatory arbitrage"

Ahn Chang-guk, Standing Commissioner of the Financial Services Commission, said the spread of stablecoins could increase foreign exchange and money laundering risks, and that continuous monitoring is needed from a financial stability perspective.

According to industry sources on the 20th, Commissioner Ahn attended the Financial Stability Board (FSB) meeting held in Riyadh, Saudi Arabia on the 18th–19th (local time) and said, "Use of stablecoins in cross-border transactions and online and offline payments is rapidly increasing," and "Cooperation among member countries is important to prevent regulatory arbitrage that may arise from differences in national regulatory regimes."

At the FSB meeting, topics discussed included ▲the state of stablecoins ▲financial stability outlook ▲modernization of regulation and supervision ▲non-bank financial intermediation (NBFI) risks ▲and cross-border payment structures. Member countries identified asset price surges, sovereign debt burdens, cyber risks, and the spread of stablecoins as major vulnerabilities and said vigilance is needed.

It was reported that member countries reached a consensus that as multiple operators issuing stablecoins emerge in many countries, differences between national regulatory frameworks could emerge as a new risk factor.

Commissioner Ahn emphasized, "Since the pace of institutionalizing stablecoins differs by country, we must enhance the alignment between international standards and domestic standards based on FSB recommended standards." He also said, "South Korea is also carefully reviewing existing regulations from the perspective of productive finance," and that it is necessary to consider policy effectiveness and burdens in balance.