TechFlow News, July 08, according to "Digital Asset", Choi Ji-young, a lawyer from the Bank of Korea (South Korea's central bank), and Park Jun-young, head of the Digital Currency Team, jointly published an academic paper proposing regulation on transactions between individual stablecoin wallets—when the transaction amount exceeds $10,000, it must be declared in advance and only transactions between certified wallets are allowed, referencing the regulation in the current Foreign Exchange Transaction Act that requires declaration for foreign currency transfers over $10,000.
The paper also suggests:
- Referencing EU experience, mandate acquisition of user and transaction information for transactions involving unverified wallet addresses
- In principle, allow P2P stablecoin transactions, but introduce a blacklist mechanism for wallet addresses involved in illegal transactions
- Strengthen identity verification and transaction history verification at the on-chain/off-chain entry (On/Off-ramp) stage
- Suggest including stablecoins in the "Electronic Financial Transactions Act" defined as a new type of electronic payment method, and thereby include them in the regulatory framework of the Foreign Exchange Transaction Act
The paper points out that transactions between individual wallets have long been in a regulatory blind spot, and the international anti-money laundering agency FATF also released a report in March this year, calling on jurisdictions to strengthen risk monitoring of P2P transactions involving non-custodial wallets.
