Bank of Korea Urges Bank-Only Stablecoins to Prevent Money Laundering
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Bank of Korea recommends that only licensed commercial banks issue won-backed stablecoins to mitigate risks of money laundering and ensure financial stability. They emphasize the need for these institutions to maintain sufficient cash reserves for redemptions and to be majority-owned by bank-led consortia. This move coincides with South Korea's ongoing development of the Digital Asset Basic Act.
- Bank of Korea urges bank-only issuance of won-backed stablecoins
- BOK states that the institutions should have enough cash reserves to handle redemptions.
- Officials will require stablecoin issuers to be majority-owned by bank-led consortia.
Bank of Korea (BOK), South Korea’s central bank, is pushing for only licensed commercial banks to issue won-backed stablecoins. In a recommendation sent to lawmakers on February 23, the bank warned that allowing others to do so could increase money laundering risks, interfere with monetary policy, and threaten financial stability.
The call comes as the country finalizes its crypto rulebook, the Digital Asset Basic Act.
Bank of Korea says won stablecoins should only be issued by institutions with strong oversight and solid compliance systems. Additionally, they should have enough cash reserves to handle redemptions.
Offici…
Read The Full Article Bank of Korea Urges Bank-Only Stablecoins to Prevent Money Laundering On Coin Edition.
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Bank of Korea Urges Bank-Only Stablecoins to Prevent Money Laundering
Share:
Bank of Korea recommends that only licensed commercial banks issue won-backed stablecoins to mitigate risks of money laundering and ensure financial stability. They emphasize the need for these institutions to maintain sufficient cash reserves for redemptions and to be majority-owned by bank-led consortia. This move coincides with South Korea's ongoing development of the Digital Asset Basic Act.
- Bank of Korea urges bank-only issuance of won-backed stablecoins
- BOK states that the institutions should have enough cash reserves to handle redemptions.
- Officials will require stablecoin issuers to be majority-owned by bank-led consortia.
Bank of Korea (BOK), South Korea’s central bank, is pushing for only licensed commercial banks to issue won-backed stablecoins. In a recommendation sent to lawmakers on February 23, the bank warned that allowing others to do so could increase money laundering risks, interfere with monetary policy, and threaten financial stability.
The call comes as the country finalizes its crypto rulebook, the Digital Asset Basic Act.
Bank of Korea says won stablecoins should only be issued by institutions with strong oversight and solid compliance systems. Additionally, they should have enough cash reserves to handle redemptions.
Offici…
Read The Full Article Bank of Korea Urges Bank-Only Stablecoins to Prevent Money Laundering On Coin Edition.
In This News
Share:
In This News
Share:
Read More
Bank of Korea Urges Bank-Led Won Stablecoin Issuance