South Korea Prepares Regulatory Framework for Stablecoins

South Korea’s central bank, the Bank of Korea (BOK), is working with relevant authorities to create a regulatory framework for stablecoins. This move seeks to ensure the stability and practical use of these digital assets while preventing their misuse for circumventing foreign exchange controls. Notably, Governor Lee Chang-yong emphasized that while stablecoins have driven innovation in fintech, concerns about their potential as legal tender substitutes necessitate regulatory action.