The government aims to strengthen user protection by enforcing strict security standards for virtual asset service providers, including insurance obligations and penalties for non-compliance.
South Korea is preparing to impose exchange controls on cross-border transactions involving stablecoins, particularly the dollar. The Ministry of Economy and Finance has unveiled plans to ensure the safety of stablecoin transactions with a focus on cross-border usage. The Financial Services Commission plans to address these regulations in the next phase of the country’s Virtual Asset User Protection Act.
The regulatory framework will initially focus on stablecoins tied to the Korean won, and will later expand to include foreign currency-denominated tokens. This reflects recent regulatory developments in Japan and the EU. South Korea’s new law will focus on user protection and enforce stricter security standards for virtual asset service providers, including insurance obligations and penalties for violations.
