South Korea's Financial Services Commission has endorsed a proposal by the Bank of Korea to restrict stablecoin issuance to bank-controlled consortia, sparking debate. Under the proposed legislation submitted to the National Assembly, banks must maintain majority control, though tech companies can be the largest single shareholders. The bill also seeks to impose stricter IT stability requirements on cryptocurrency exchanges, mandate compensation for hacking losses, and introduce fines up to 10% of annual revenue. Stablecoin issuers would need a minimum paid-in capital of 5 billion won (approximately $3.7 million), with potential for future increases.
South Korea Backs Bank-Led Stablecoin Issuance Amid Controversy
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