South Korea's FSC Launches Study on Virtual Asset Legislation and Stablecoin Integration

PANews reported on August 7 that the FIU commissioned a study on the second phase of virtual asset legislation, with upcoming regulation expected to integrate stablecoins for payments and cross-border transfers.

Summary

According to PANews and News1, South Korea's Financial Intelligence Unit under the FSC commissioned a study on August 6 focusing on the second phase of virtual asset legislation and stablecoin AML measures. The upcoming legislation is expected to integrate stablecoins into a regulatory framework that facilitates payments and cross-border transfers while reviewing global approaches and applicable AML and CFT standards.

Terms & Concepts
  • Stablecoins: Digital assets designed to maintain a stable value by being pegged to a reserve asset.
  • AML: Anti-Money Laundering measures aimed at preventing financial crimes.
  • CFT: Counter Financing of Terrorism measures intended to stop the use of funds for terrorist activities.