Where Is Cryptocurrency Regulation Headed? Bank of Korea Publishes Legislative Direction Report

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The Bank of Korea announced on the 5th that it has prepared and published a report titled "Key Issues and Legislative Directions Related to Cryptocurrency Regulation," a payment and settlement survey data, to serve as a reference for legislative discussions in the National Assembly, government, related organizations, academia, and research institutions.

This report reviews domestic and international policy trends on major issues related to cryptocurrency regulation, including cryptocurrency classification systems, entry regulations, investor protection, taxation, and foreign exchange transactions, and presents the personal views of the authors on legislative directions.

It also includes content on stablecoins, which have become important topics of interest from the perspectives of payment and settlement, monetary policy, and financial stability.

Stablecoins refer to a type of cryptocurrency that has value stabilization mechanisms to maintain stable value. Since they have a high potential to be used as a means of payment, the European Union (EU) is establishing cryptocurrency regulation and supervision systems centered on stablecoins.

The Bank of Korea explained, "We have summarized recent regulatory discussion trends of major countries such as the EU and Japan, as well as international organizations, to provide a reference for domestic legislative discussions, including the Basic Act on Virtual Assets."