Hashed pushes for regulatory framework to support KRW stablecoin growth

Stablecoins must be processed both as payment tools and investment assets, requiring a full regulatory framework, suggests a new research.

A stable linked to the Korean won could give South Korea A stronger basis in the world race on the stablescoin, according to a recent Think Tank report has chopped open research and four pillars.

THE reportPublished on March 24, suggests that the launch of a Won stablecoin could make currency more practical for digital transactions while filling the gap between the Korean cryptography market and international digital asset ecosystems.

According to the report, the introduction of a Stablecoin KRW “could help approach structural ineffectiveness on the Korean cryptography market”, as well as “serve as a basis for various fintech industries that emerge from this ecosystem”. The chopped open research notes that the high liquidity of Korean exchanges could provide an advantage to a stablecoin krw compared to alternatives such as yen or euro.

While stimulating the use of stablescoins won handles, the report also highlights the concerns concerning the rapid rise of the stables -based on the dollar, like Tether (USDT) and a USD part (USDC), which could exacerbate the country’s capital outings. The report provides that the capital outings of the Korean cryptography market could become a more important problem, which has a potentially impact on the country’s financial stability and the force of the on.

In the report, the chopped open research calls a regulatory framework dedicated to stablecoins, claiming that these assets “have characteristics of payment instruments and investment assets, requiring a dedicated regulatory framework”. The report suggests allowing banks and non-banks to issue stablecoins under strict license and security requirements.

In addition, it proposes that the KRW Stablecoins issued abroad be regulated at the national level, while the foreign stables set to other fiduciary currencies should only be authorized if they meet equivalent regulatory standards.