The Bank of Korea (BoK) wants to play an active role in monitoring stablecoins, according to a report issued Monday. It singled out stablecoins as needing more stringent regulation compared to other crypto assets since they have the potential to undermine financial stability.

The BoK’s report echoes concerns of jurisdictions across the world who are currently drawing up proposals to regulate stablecoins.

The report argues for having stablecoin issuers meet requirements on minimum capital and reserve assets to minimize the possibility of risk transfer to the payment and settlement system.

(by Lavender Au)