South Korea’s bill for the creation of a stablecoin backed by the won, the country’s currency, could be ready in October.

According to local media outlet MoneyToday on Monday, August 18, “the Financial Services Commission (FSC) will unveil the bill as part of the second phase of the country’s Virtual Asset User Protection Act.”

In this regard, Representative Park Min-kyu of the Democratic Party of Korea (DPK) noted that the FSC issued a report “on the policy direction for stablecoins” and the government bill is expected to be submitted to the National Assembly in October.

This legal instrument should establish “the requirements for issuance, collateral management, and internal control systems for stablecoins.”

The Asian country is also seeking to reduce dependence on dollar-pegged stablecoins by issuing a won-backed stablecoin. The idea has been in the works since 2023. Recently, “several lawmakers have since submitted related proposals, including the Digital Asset Basic Law by Representative Min Byung-deok of the Democratic Party, the Act on the Issuance and Circulation of Stable Value Digital Assets by Representative Ahn Do-gul of the Planning and Finance Committee, and the Payment Innovation Act Using Value-Pegged Digital Assets by Representative Kim Eun-hye of the People’s Power Party.”

M.Pino

Source: cointelegraph

(Reference image source: kim giseok on Unsplash)

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La entrada South Korea to have cryptocurrency regulatory framework ready in October apareció primero en Bitfinance.

In a recent legislative proposal, South Korea’s Financial Services Commission (FSC) proposed changes to the country’s credit financing laws, with the aim of prohibiting local citizens from purchasing cryptocurrencies through credit cards.

The FSC expressed concern about possible illegal flows and money laundering activities that could arise if South Korean citizens conducted cryptocurrency transactions on foreign exchanges.

“There have been concerns about the illegal outflow of domestic funds abroad due to card payments on virtual asset exchanges abroad, money laundering, speculation and the encouragement of speculative activities,” the FSC said in a legislative communication dated January 3.

Currently, local laws allow cryptocurrency transactions only through deposit and withdrawal accounts on local exchanges, where the identity of the user can be verified. However, these regulations do not apply to foreign cryptoexchanges, according to local media Yonhap.

The financial regulator is seeking public opinion on this proposal, and the feedback period will run until 13 February. The proposal is expected to go through a review and resolution process, with the goal of coming into force in the first half of 2024.

K. Tovar

Source: Cointelegraph

(Reference image source: Traxer, Unsplash)

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La entrada South Korea will seek to block crypto purchases with cards apareció primero en Bitfinance.