South Korea considers regulations for cross-border stablecoin transactions

The South Korean 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 The Korea Economic Daily. The ministry explained that stablecoins are primarily used for transactions within the crypto ecosystem. It also highlighted the potential for their use to expand into the real economy as a method for payments and transactions across borders. A government official said that the regulation of stablecoins will begin with creating a system to issue stablecoins tied to the Korean won. The approach will involve establishing a legal framework for these won-linked stablecoins and later applying it to stablecoins tied to foreign currencies.