South Korea’s Central Bank lobbying for more commitment in Stablecoin Rules when the government increases its driving force to launch stable Stablecoins.
The Korea Bank (Book) recently submitted a proposal to the Government’s Political Planning Committee to have all relevant economic watchdogs involved in monitoring any issuance of a winning Stablecoin.
Book suggested that a “PAN-state regulatory response is necessary. A political body consisting of relevant authorities should be considered,” reports Korea Herald.
The submission referred to the US StableCoin certification and review committee, set up under New genius. The Committee reviews Applications from interested issuers and recommends license approvals or denials. It is the chairman of the Secretary of the Ministry of Finance, with the chairman of the Federal Reserve and Federal Deposit Insurance Corporation (FDIC) as members.
If Bok’s proposal is adopted, it can give the central bank and all other members of the new committee the power to veto against the issuance of a license to a Stablecoin company.
The proposal would also restore Book’s surveillance of Stablecoins, which it can be lost if a new draft bill sails through Parliament. The bill submits jurisdiction to the Financial Services Commission (FSC), although a separate bill recommends that FSC consults with a book on decisive decision.
The latest proposal signals a policy change for the Central Bank, which has been against winning Stablecoins for several years. However, President Lee Jae-Myung administration, who took over in June, has been pro-digital assets and has pressed book to adapt to its attitude, says local stores.
Jae-Myung won the Snap election in June on campaign promises to turn South Korea into a digital asset hub, with winning Stablecoins among his most important promises.
Book also wanted Stablecoin issue to be moved only to banking institutes, but this attitude is now changing now as well.
In a new one interview With CNBC, Governor Rhee Chang-Yong noted that the supervisory authority has received petitions from Fintechs that want the issuance to be expanded in addition to the regulated lenders.
“They (fintechs) have asked for permission of financial institutions that are not a bank to participate. In view of this new demand, we must calibrate our plan,” he said.
The top bank is worried about the consequences of Stabilized stable On the country’s capital flow management, he added. Unregulated won Stablecoins can “speed up simpler transmission to Dollar-Den-dominated Stablecoins and undermine part of our policy.”
In some regions, such as Europe, governments have promoted Stablecoins linked to local currencies to reduce the dependence on the USD tokens. And although this would also apply to South Korea, the governor worries that it may have the opposite effect by making it easier to convert won to USD symbols.
At the same time, South Korean lenders and big fintechs rush to become pioneers in the issuance of local Stablecoins. Woori Bank, Cocoa Bank, Kookmin Bank, Industrial Bank of Korea and more have all submitted Stablecoin-related brands. Google Finance (Nasdaq: Googl) Data shows that the banks that applied for the trademarks had registered a 20% increase in the share value. Cocoa Bank, for example, registered an increase of 19.3% in the share price the day after applying for the trademarks.
Hong Kong issues fewer than ten Stablecoin licenses
IN Hong KongOver 40 companies will be locked up in a fierce competition for a limited number of Stablecoin issuing licenses from next month, says local reports.
Hong Kong’s Stablecoin Regulations have been hailed as the most progressive globally, with the city state welcoming The world’s first dedicated Stablecoin team in May. However, only a handful of companies will receive the coveted license, the Secretary of State Christopher Hui has revealed.
In one interview With a local outlet, HUI revealed that the number of licensed issuers will probably be “in individual figures” at least for this year.
The city’s financial supervisory authority, Hong Kong Monetary Authority (HKMA), will open the license application process on August 1, when the Stablecoin Regulation officially comes into force. Over 40 companies have expressed interest in the license, but according to HUI, only a handful will be successful in their mission.
Local reports say that HKMA will prioritize the large financial and technology companies in Hong Kong and China, with start -ups and smaller companies that will miss. Some of the giants expected to apply include China’s MyR Group and JD.com (Nasdaq: JD) and A consortium consists of default chartered (Nasdaq: SCBFF) and Animoca brands.
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