South Korea's central bank and legislative body have disagreements over regulating the cryptocurrency market, fearing that the stablecoin frenzy will intensify capital outflows

According to FT Chinese website, the stablecoin craze has put the Bank of Korea in opposition to lawmakers. It is reported that the ruling party has proposed legislation to allow companies with a share capital of only 500 million Korean won to issue stablecoins denominated in Korean won. This is a cryptocurrency supported by fiat currency reserves. However, the Bank of Korea is currently in disagreement with lawmakers on how to regulate one of the world's largest cryptocurrency financial markets, as this move may trigger a frenzy of demand for stablecoins and exacerbate capital outflows. Previously, the Financial Supervisory Service (FSS) of South Korea has instructed local asset management companies to adjust their exchange traded funds (ETFs) to limit their exposure to cryptocurrency related companies such as Coinbase and Strategy.