The chairman of the South Korean Financial Committee supports the formulation of stablecoin regulatory policies as soon as possible, but is concerned about the strong performance of the US dollar

Odaily Planet Daily News South Korea's Financial Services Commission (FSC) Chairman Kim Byung-hwan said the country needs to act "quickly" to regulate stablecoins, but is concerned about the "strength" of the U.S. dollar. Kim Byung-hwan said: "I also think that stablecoin regulation needs to be formulated quickly, but we need to take into account that the strength of the U.S. dollar is currently affected by underlying macro factors, including the strong performance of the U.S. economy." These remarks seem to indicate that the FSC is still on track to introduce stablecoin regulations later this year. Lawmakers and financial regulators are currently developing the "second phase" of the Virtual Asset User Protection Act, a cryptocurrency-related legislation that will take effect in mid-2024. Cryptocurrency advocates hope that regulators will include provisions on stablecoin regulation in this new bill. Major South Korean companies hope to launch stablecoins pegged to the U.S. dollar in the near future, and many companies are worried about falling behind technology competitors that issue stablecoins in the United States and elsewhere. But regulators have been dragging their feet on the issue, perhaps because of continued political uncertainty in the presidency. Yoon Han-hong, a member of the People's Power Party and chairman of the National Assembly's Political Affairs Committee, said: "To issue stablecoins, Korean companies need to buy U.S. Treasuries. This means they need to provide dollars to the federal government. This means that the dollars are flowing back to the U.S. government and basically disappearing. But our financial regulators are too dismissive of this concern." (Money Today)