The Need to Bring KRW Stablecoins and On-Chain Derivatives into the Institutional Framework

As onchain finance rapidly spreads, the lines between stablecoins, derivatives, insurance, and gambling are becoming blurred. The article pointed out that KRW stablecoins and onchain derivatives need to be brought into the regulated system and managed. The piece cites an example of an onchain platform where betting took place on local election results, explaining that markets that price in future uncertainty on the blockchain are growing. It also noted that overseas, trades linked to price fluctuations in assets such as Samsung Electronics, SK Hynix, and SpaceX are being carried out, but Korean investors face restricted access because of existing regulations. It also analyzed that as structures in which only price data is traded without the movement of real assets increase, the scope of existing financial regulation and the need for its reform are growing as well. Overall, the article conveys the concern that rather than unconditionally excluding these new types of financial products, a supervisory and regulatory framework should be established within the regulated system.