South Korea Considers Allowing Banks to Manage Stablecoin Reserves

South Korean financial authorities are evaluating a proposal to permit banks to oversee reserve assets for stablecoins denominated in won. According to NS3.AI, the Financial Services Commission announced its intention to examine reserve management strategies by referencing the existing Virtual Asset User Protection Act. This consideration of reserve custody is part of a larger effort to regulate stablecoin issuers and establish rules for cryptocurrency exchange ownership.