South Korea is Considering Regulation of Cross-Border Stablecoin Trading

On October 8, South Korea's Ministry of Economy and Finance announced that it is considering measures to ensure the integrity of cross-border transactions involving virtual assets such as stablecoins, according to a report in the Korea Economic Daily.

The ministry explained that stablecoins are primarily used for transactions within the cryptocurrency ecosystem and emphasized their potential expansion into the real economy as a cross-border payment and transaction method.

A government official said the regulatory efforts for stablecoins will start with the construction of a stablecoin issuance system pegged to the won. The system will start with a legal framework for the won-pegged stablecoin and, based on that, gradually expand it to foreign currency-pegged stablecoins.