FSC opposes giving Bank of Korea emergency powers over stablecoins

South Korea's Financial Services Commission (FSC) has opposed a proposal to grant the Bank of Korea (BOK) the authority to request emergency orders and conduct joint inspections of won-denominated stablecoin issuers, Yonhap News reported. The FSC argued that extending the BOK's inspection powers to small-scale issuers, whose volumes are too low to affect monetary policy, would be excessive. The commission also stated that there is no legislative precedent in major economies for providing direct liquidity support to stablecoin issuers through deposit insurance systems, adding that a cautious approach is necessary given the ongoing discussions and the nature of stablecoins as a means of payment.