South Korea's central bank and legislature disagree on regulating the crypto market, fearing that the stablecoin craze will exacerbate capital outflows

PANews reported on July 27 that according to FT Chinese, the stablecoin craze has put the Bank of Korea at odds with lawmakers. It is reported that the ruling party has proposed legislation to allow companies with a share capital of only 500 million won to issue stablecoins denominated in won, a cryptocurrency backed by fiat currency reserves. However, the Bank of Korea is at odds with lawmakers on how to regulate one of the world's largest cryptocurrency financial markets, because this move may trigger a frenzy of demand for stablecoins and exacerbate capital outflows. Earlier news, the Financial Supervisory Service (FSS) of South Korea has recently instructed local asset management companies to adjust their exchange-traded funds (ETFs) to limit exposure to crypto-related companies such as Coinbase and Strategy.