South Korea tightens stablecoin regulations

The government aims to enhance user protection by enforcing strict security standards for virtual asset service providers, including insurance mandates and penalties for non-compliance.

Parents in South Korea are concerned about the government's plan to introduce AI-powered textbooks in classrooms.

South Korea is preparing to impose foreign exchange rules on cross-border transactions involving stablecoins, especially those tied to the dollar. The Ministry of Economy and Finance revealed plans to ensure the security of stablecoin transactions, focusing on cross-border uses. The Financial Services Commission will address these regulations in the upcoming phase of the country’s Virtual Asset User Protection Act.

The regulatory framework will initially focus on stablecoins tied to South Korea’s won before expanding to include foreign currency-backed tokens. It mirrors recent regulatory moves in Japan and the EU. With a strong emphasis on user protection, South Korea’s new laws will enforce stricter security standards for virtual asset service providers, including insurance mandates and penalties for non-compliance.