South Korea is reportedly getting ready to introduce a regulatory framework for a won-backed stablecoin, with its monetary regulator set to introduce a authorities invoice in October.
On Monday, South Korean information portal MoneyToday reported that the Monetary Companies Fee (FSC) will unveil the invoice as a part of a second part of the nation’s Digital Asset Consumer Safety Act.
Democratic Occasion of Korea (DPK) Consultant Park Min-kyu mentioned throughout a coverage debate that he obtained a briefing from the FSC on the coverage route on stablecoins. “The federal government invoice is predicted to be submitted to the Nationwide Meeting round October,” Park mentioned.
The invoice is predicted to stipulate necessities for issuance, collateral administration and inner management programs for stablecoins. The FSC has been engaged on the framework since 2023 by its digital asset committee, aiming to set clearer guidelines for crypto service suppliers within the nation.
Decreasing reliance on dollar-pegged stablecoins
With america ramping up its efforts on stablecoin laws, South Korea is taking part in catch-up.
Cash Immediately mentioned that institutionalizing won-pegged stablecoins had gained traction since President Lee Jae-myung pledged it throughout his marketing campaign.
A number of lawmakers have since submitted associated proposals, together with the Digital Asset Primary Act from Consultant Min Byung-deok of the Democratic Occasion, the Act on the Issuance and Circulation of Worth-Secure Digital Belongings from Consultant Ahn Do-gul of the Planning and Finance Committee and the Act on Fee Innovation Utilizing Worth-Pegged Digital Belongings from Consultant Kim Eun-hye of the Individuals Energy Occasion.
The report additionally mentioned that native trade stakeholders have cited an pressing have to introduce a won-pegged stablecoin to cut back reliance on dollar-based stablecoin tokens.
In June, main South Korean banks teamed as much as work on a won-pegged stablecoin to guard the forex in opposition to rising greenback dominance. The banks mentioned the forthcoming token was set to materialize in late 2025 or early 2026.
Actual-world asset (RWA) tokenization tracker RWA.xyz shows that as of Sunday, the whole market worth for stablecoins was $266.7 billion. The info exhibits that dollar-pegged stablecoins proceed to dominate 99.8% of the market with $266.3 billion.
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South Korea clamps down on tax evaders
Along with clarifying stablecoin guidelines, South Korea has been clamping down on residents utilizing crypto to keep away from paying taxes.
On Monday, tax officers in Jeju Metropolis, the capital of Jeju Province, started freezing and seizing digital belongings of customers suspected of dodging tax necessities utilizing crypto.
Authorities started investigating nearly 3,000 individuals in arrears for a complete of about $14.2 million to substantiate if they’d holdings that may very well be seized to settle their tax balances.
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