“If technical stability and administrative controls are not guaranteed throughout the issuance and distribution stages, stablecoins may become a new vulnerability in the financial system.”
Heo Se-kyung, head of the Financial Security Service team, emphasized this during the 'Next Finance (Next Finance): Digital Finance and Security Strategy Launched by Stablecoins' seminar held by the Financial Security Service at the Seoul Yeouido Financial Investment Association Bulls Hall on the 28th.
On this day, Team Leader Hur introduced the main causes of stablecoin security incidents and stablecoin issuance security standards proposed by the Hong Kong Monetary Authority through a presentation on the topic of “Stablecoin Security Considerations,” and explained the security controls required for the safe operation of stablecoin infrastructure.
He explained, “A stablecoin security incident is not a problem with the blockchain itself, but a problem related to operations running on it,” and “it can occur due to weak smart contracts, key management failures, and lack of internal security controls.” He added, “Major overseas countries are expanding and applying the same principles of the same function, same risk, and same regulation to the digital asset sector,” and “it shows that stablecoin security is no longer limited to the technical field, but is being incorporated into a core area of financial regulation.”
At the event on this day, Shim Won-Tae, the Finance Committee's virtual assets and bureaucrat also presented key details of stablecoin-related legislation being promoted by the government and stablecoin discipline system issues. Secretary Shim explained, “We must consider user protection, global consistency, and the impact on monetary policy and foreign exchange policy,” and “it is taking time to prepare a government bill because we coordinate all matters relating to issuance, issuer, procedures, repayment, reserve asset management, and supervision of overseas stablecoins.”
NH Nonghyup Bank team leader Liu Chang-bo, who was the first presenter, introduced stablecoin use cases in countries around the world and shared examples of NH Nonghyup Bank's ongoing stablecoin-based 'Digital Tax Refund (Digital Tax Refund) 'pilot project and stablecoin collaboration with overseas banks.
Shin Sang-hoon, an expert member of Kim & Chang Law Office, explained the domestic digital asset regulation system and legislation currently being discussed, and suggested that effective measures, such as amending the Specific Financial Information Act, are necessary to prevent money laundering risks that may occur during the use of stablecoins.
Next, LG CNS Director Song Eung-joon introduced the company's experience in building blockchain-based token securities infrastructure and shared infrastructure design principles that financial companies preparing for stablecoin business should have and specific measures to implement them.
Park Sang-won, director of the Financial Security Service, said, “Now is the time to discuss ways to secure security and build infrastructure in earnest in preparation for the legalization of stablecoins,” and emphasized that “we will faithfully perform necessary roles such as smart contract security verification so that a safe stablecoin ecosystem can be created.”
