South Korean financial authorities plan to ban corporate investment in stablecoins
Svmuu News: Stablecoins will be excluded from the scope of investment licenses under the "Guidelines for Corporate Virtual Currency Transactions" currently being drafted by the Financial Services Commission of South Korea. These guidelines aim to allow listed corporations and registered professional investment firms to trade digital assets for investment or financial purposes. To prevent disorderly investment during the market’s early stages, authorities have decided to exclude U.S. dollar-pegged stablecoins such as USDT and USDC from the scope of the permit. One reason for this exclusion is that South Korea’s current Foreign Exchange Transactions Act does not recognize stablecoins as a means of international payment. Including stablecoins within the scope of investment permits would conflict with the current legal framework, effectively allowing companies to use stablecoins for commercial purposes such as trade. The National Assembly is currently reviewing an amendment to the Foreign Exchange Transactions Act, proposed last October, that would recognize stablecoins as a means of payment. It is reported that some listed companies with a high proportion of international trade have requested that stablecoins be included in the scope of the license to facilitate foreign exchange hedging using stablecoins. Even if excluded from the guidelines, companies can still trade stablecoins through personal wallets or overseas exchanges. Industry insiders revealed that the relevant working group has completed its tasks, but the release of the guidelines is tied to the legislative process of the Framework Act on Digital Assets.
Source:Odaily · Source Link
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