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South Korea\u2019s stablecoin debate remains stalled as the central bank raises concerns over capital flows, issuer oversight and US dollar-linked risks.<\/p>\n
South Korea\u2019s central bank chief warned that Korean won-denominated stablecoins could complicate capital flow management, adding a note of caution to an ongoing debate among lawmakers over whether and how domestic stablecoins should be issued, according to local reports.<\/p>\n
Speaking<\/a> at the Asian Financial Forum in Hong Kong, Bank of Korea Governor Lee Chang-yong said authorities are considering a new registration framework that would allow domestic institutions to issue virtual assets,<\/strong> according to a report by Radio Television Hong Kong. He cautioned, however, that stablecoins remain controversial because of their potential impact on foreign exchange stability.<\/p>\n Lee said won-pegged stablecoins would likely be used mainly for cross-border transactions. He warned that won stablecoins, combined with US dollar stablecoins, could be used to bypass capital flow management measures in periods of volatility.\u00a0<\/p>\n Read more<\/p>\n<\/p>\n If you liked the article, do not forget to share it with your friends. Follow us on\u00a0Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n If you want to read more News<\/a> articles, you can visit our General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n\n