South Korea's Financial Services Commission (FSC) has declined a proposal to extend the Bank of Korea's emergency powers over stablecoin issuers. The FSC stated that small-scale stablecoin operations do not threaten monetary policy, making such powers unnecessary. This decision reflects a global stance, as no major economy currently offers direct liquidity support to stablecoin issuers. The FSC highlighted the importance of balanced regulation to foster innovation while ensuring effective oversight.
South Korea Denies Central Bank Emergency Powers on Stablecoin Regulation
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