South Korea's Central Bank: If a company with a capital of only 500 million won issues a won-denominated stablecoin, it may exacerbate capital outflow.

Odaily News The stablecoin craze has put the South Korean Central Bank and lawmakers at odds, as it is reported that the ruling party has proposed legislation allowing companies with a capital of only 500 million won to issue stablecoins denominated in won, which are a type of crypto assets backed by fiat currency reserves. However, the South Korean Central Bank is at odds with lawmakers over how to regulate one of the world's largest crypto asset financial markets, as this move could trigger a frenzied demand for stablecoins and exacerbate capital outflows. Previously, the Financial Supervisory Service (FSS) of South Korea recently instructed local asset management companies to adjust their exchange-traded funds (ETFs) to limit exposure to crypto-related companies such as Coinbase and Strategy. (FT Chinese Network)