Hold onto your hats, crypto enthusiasts! Tether's got its hands on a whopping $97.6 billion in U.S. Treasury bonds, showing just how much stablecoins are shaking up the global capital market scene.
But wait, there's more brewing in South Korea! The Ministry of Strategy and Finance is putting its thinking cap on and considering stricter rules for stablecoins. Why, you ask? Well, stablecoins are starting to look a bit like sneaky players in the foreign exchange game, slipping under the radar without enough government oversight.
Word on the street is that stablecoins are becoming the go-to for transactions in the virtual asset world, especially when it comes to cross-border deals. Officials are getting a bit antsy that these digital coins might soon become a big deal in the real economy too.
The Financial Services Commission (FSC) is jumping on the stablecoin bandwagon, making them a top priority in the next round of the Virtual Asset User Protection Act (VAUPA). They're taking notes from places like Japan and the EU to shape their own rules.
Critics have been shaking their heads, saying the country has been dragging its feet while stablecoins are becoming big players in trade. Now, the government is scrambling to patch up those pesky macroeconomic policy holes.
With Tether's impressive stash of Treasury bonds, almost neck-and-neck with South Korea's $116.7 billion, the country is feeling the heat to get those foreign exchange rules in place. One official spilled the beans: “We're kicking things off by setting up a system for issuing coins pegged to the won.”
While South Korea is just getting its ducks in a row, the EU and Japan are already ahead of the game with their stablecoin regulations. Their rules? At least 30% of customer deposits need to be kept safe and sound, and exchanges have to track cross-border deals. The U.S., U.K., and Australia are also catching up in this regulatory race.
South Korea is gearing up to roll out a new regulatory framework, taking cues from the big players. They're even loosening the reins on corporations holding virtual asset accounts and making stablecoin trades part of official stats.
Earlier this year, South Korea introduced VAUPA, setting the stage for crypto exchanges like Upbit and Bithumb to pay supervisory fees based on their earnings come 2025. They're also making sure exchanges keep a hefty 80% of user assets in cold storage to keep investments safe and sound. Plus, they're keeping a close eye on trading assets, ready to delist any that don't make the cut.
So, there you have it! The world of crypto is buzzing with excitement, and South Korea's getting ready to dive in headfirst. Keep your eyes peeled for more developments!
