Financial Services Commission "Stablecoin Regulatory Framework to be Prepared by the Second Half of This Year Without Delay"

The Financial Services Commission emphasized that it will proceed with the stablecoin regulatory framework as originally scheduled by the second half of this year.

On the 17th, the Financial Services Commission stated in a press release, "The government presented the direction for reviewing the second phase of the virtual asset law at the 2nd Virtual Asset Committee held on January 15th, discussing the 'Stablecoin Regulatory Plan' as a top priority. Accordingly, we plan to prepare specific details without delay by the second half of the year, focusing on the Virtual Asset Task Force (TF)."

The FSC also diagnosed that "Dollar stablecoins such as Tether (USDT) are being used by domestic users as a means to participate in overseas virtual asset markets." It continued, "From November last year to February this year, when global virtual asset trading was active, the inflow of dollar stablecoins into the country (approximately 35.3 trillion won) and the outflow overseas (approximately 35.3 trillion won) were of similar scale, making it difficult to see dollar stablecoins as being unilaterally outflowed."

Meanwhile, the FSC and the Financial Supervisory Service plan to strengthen monitoring of virtual assets, including stablecoins, as market volatility has increased recently.