Summary
- It was reported that the banking sector has agreed to establish a joint venture for the collective issuance of stablecoins.
- Fintech companies such as Toss and Kakao have also begun developing new business ideas by setting up internal consultative bodies and strategies at the group level.
- The financial authorities are stepping up regulatory reforms and commissioning research services to institutionalize stablecoins.
Toss and Kakao respond at a group level
Banks jointly issue through joint ventures
Authorities commission research to improve regulations
Financial institutions across the board—including banks, card companies, and fintechs—are coming up with new business plans and countermeasures in preparation for incorporating stablecoins into the regulatory system. The banking sector has agreed to form a joint venture for the collective issuance of stablecoins, while some big tech firms are developing strategies at the group level. The government has also officially begun its efforts to establish relevant regulations by commissioning research services to revise existing regulatory frameworks.
According to the financial industry on the 7th, Viva Republica (Toss) recently organized an internal consultative body for stablecoin-related matters and began assessing the cryptocurrency market status and planning new businesses. This consultative group, led by Gyuha Kim, Chief Business Officer (CBO) of Toss, also includes Toss’s financial affiliates such as Toss Bank. The move to establish a joint strategy comes as widespread adoption of stablecoins could bring major changes to the overall financial market.
Kakao Group recently officially launched a group-level stablecoin task force (TF) consisting of Kakao headquarters, Kakao Pay, and Kakao Securities. The heads of the three companies all serve as joint TF leaders, initiating the planning of new stablecoin-related business ventures.
Financial authorities have also begun working on regulatory system improvements ahead of stablecoin institutionalization. On the 6th, the Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC) commissioned a study titled 'Research on Phase 2 Legislation for Virtual Assets and Supplementary Anti-Money Laundering (AML) Measures for Stablecoins.' The research will review stablecoin-related legislation in major countries abroad and analyze the status of AML and Countering the Financing of Terrorism (CFT) regulation.
The Financial Services Commission explained, “The aim is to preemptively improve the relevant regulatory framework as major countries are successively issuing stablecoins.”
Eui-jin Jeong / Yeon-su Shin, reporters justjin@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
