South Korean Regulator Plans to Look at Stablecoins' Role in Money Laundering: Report

The country's Financial Services Commission considers stablecoins to be highly susceptible to money laundering, according to a new report.

AccessTimeIconOct 24, 2022 at 1:38 p.m. UTC
Updated Oct 24, 2022 at 3:40 p.m. UTC

Jamie Crawley is a CoinDesk news reporter based in London.

South Korea's Financial Services Commission (FSC) intends to look into the proportion of stablecoins being used on crypto exchanges to prevent money laundering, local news agency News1 reported Monday.

The FSC's "Risk Assessment Index Development, Improvement, and Application Methods Study for New Business Areas" report said that financial authorities consider stablecoins to be highly susceptible to money laundering.

The regulator has therefore established a position that it should look into the proportion of stablecoins being used on exchanges as a means of addressing the threat of money laundering, according to News1's report.

South Korean authorities have been proactive with regard to digital assets in recent years, with some 13 crypto-related bills awaiting debate in the country's parliament as of August.

In June, the South Korean government set about forming a committee specifically to oversee the digital assets market, prompted by the collapse of the Terra network. Around 280,000 South Koreans were believed to have been victims of the plunge in the value of the Terra stablecoin UST and its sister token LUNA.





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Jamie Crawley is a CoinDesk news reporter based in London.

CoinDesk - Unknown

Jamie Crawley is a CoinDesk news reporter based in London.