The South Korean government has announced it intends to apply foreign exchange regulations to stablecoin transactions linked to the US dollar.
The Ministry of Economy and Finance revealed on October 8 that it is considering measures to ensure the proper handling of stablecoin transactions.
The ministry noted that, in addition to their use within the crypto ecosystem, stablecoins are also used for cross-border transfers, which may require different regulations.
The Financial Services Commission (FSS), South Korea's top financial regulator, has also stated it will prioritize the discussion of stablecoins during the second phase of the country's Virtual Assets User Protection Act.
The FSS intends to seek input from regulators in other international jurisdictions, such as Japan and the European Union.