South Korea's Ministry of Strategy and Finance announced on October 8 that it is reviewing measures to tighten regulation of stablecoins.
- The decision comes amid criticism that stablecoins pose a hidden threat in foreign exchange due to insufficient oversight.
- Stablecoins are actively used in virtual assets and cross-border transactions.
- The Financial Services Commission is prioritizing stablecoins in the second phase of the Virtual Asset User Protection Act (VAUPA).
- South Korea is developing a regulatory framework inspired by international practices, including easing rules for corporations and including stablecoins in official statistics.
These measures are aimed at improving macroeconomic policy and protecting investors.