The trading value was likely much higher as more local companies use dollar-backed stablecoins, which are difficult for the government to track, in their international trades due to convenience and low costs, experts said.“International trades in stablecoins are not reflected in official statistics, which could create a loophole in the government’s policies,” said Hwang Suk Jin, professor at Dongguk University Graduate School of International Affairs & Information Security in Seoul.“The government needs to consider measures to deal with the issue.”MORE VOLATILE CAPITAL FLOWSThe growing use of stablecoins is expected to accelerate capital in and out of the country as cryptocurrency trading does not need to go through the banking system, industry sources said.
It also takes two to five days to complete money transfers through banks.“Money transfer costs through stablecoins are very low as they allow direct settlements through blockchain networks,” said an industry source.“Direct transactions between exporters and importers reduce FX rate risks.” STRICT REGULATIONSSouth Korea’s strict regulations on the currency market caused local companies to seek stablecoins, industry sources said.
The ministry requires the buyer to report all details of the transaction.“Small trading companies, which lack personnel handling complex administrative procedures in trades in the dollar, may prefer stablecoins,” said another industry source.
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