Asian Regulators Integrate Crypto Assets into Financial Rules

The crypto landscape in South Korea and Japan is shifting as regulators move to integrate digital assets into existing financial rules. A proposed bill in South Korea would grant won-backed stablecoins a special status, but the central bank wants commercial banks to be involved in their issuance.

According to the Financial Times, lawmakers want to allow companies with equity as low as 500 million won to issue won-based stablecoins, while the Bank of Korea warns that non-bank issuers could worsen money-laundering and financial-stability risks.

The debate in South Korea sits beside a broader official unease over dollar stablecoins. The Financial Times reported that more than $19 billion left South Korea in the first quarter through dollar-backed stablecoin demand, a figure that explains why local policymakers are paying attention.