Bank of Korea (BOK) has said it wants a role in authorizing Won stablecoin issuers, given stablecoin legislation is a work in progress. Separately, Tether will now issue Tether dollar stablecoins on the Kaia public blockchain, which was formed by merging Korea’s Klaytn with Japan’s Finschia blockchain.
Last week Koh Kyung-chul, the Head of the BOK’s Electronic Finance team, highlighted the central bank’s desire to play a role in stablecoin regulation. He said, “Stablecoins have a significant impact on the central bank’s policy execution, including monetary policy, financial stability, and payment systems,” and emphasized, “There is a need to grant the central bank substantial legal authority at the authorization stage regarding issuer entry regulations,” according to a report from BloomingBit.
Koh was speaking during a Korean Financial Law Association conference last week. He continued, “By substantially intervening at the authorization stage, the central bank should minimize the negative impact on its policy execution.”
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