In response to the “Terra/LUNA collapse,” South Korean regulators claim they would take action to control stablecoins.
According to ZDNet Korea, the regulatory Financial Supervisory Service (FSS) has noted that the new “Digital Assets Framework Act” will be dealing with issues related to “non-security tokens.”
As for the crypto assets that are considered to be securities, they will be regulated by the existing Financial Investment Services.
Seoul, however, intends to follow its international counterparts, specifically in terms of stablecoin regulation. The FFS and other regulators emphasised the importance of the policy being modelled in a way that is “consistent with overseas regulations.”
The head of the FSS, Lee Bok-Hyeon, stated that both the policymakers and regulators believe that the strengthening of stablecoin regulations is in order.
However, Lee claimed that the global authorities are still discussing about “various issues” in regards to crypto assets.
The Financial Services Commission established a new crypto task force, with an aim of creating policy recommendations before the new act formulation.
Political leaders are reported to be optimistic that the act will be unveiled before the year is over.
