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# Proponents of Hashed Regulation Seek to Stimulate Growth of Korean Won-Denominated Stablecoins
Latest investigations imply that stablecoins must be regarded as both modes of payment and investment platforms, thus requiring a thorough regulatory structure. Toncoin (TON) Value Forecast for March 26th
A new analysis by Hashed Open Research and Four Pillars reveals that stablecoins linked to the Korean won might afford South Korea a strategic benefit in the worldwide stablecoin arena.
The analysis, launched on March 24, contends that launching stablecoins grounded on the Korean won would not just enhance the currency’s functionality in virtual transactions but would also connect the South Korean virtual currency market with the worldwide digital asset realm.
The analysis observes that the inclusion of a Korean won stablecoin “would assist in resolving structural challenges in the South Korean virtual currency market” and “establish the groundwork for the burgeoning fintech sector.” Hashed Open Research posits that the substantial liquidity of South Korean exchanges would grant the Korean won stablecoin a benefit over other options like the Japanese yen or the euro.
While advocating for the utilization of Korean won stablecoins, the analysis also underscores apprehensions regarding the swift proliferation of dollar-based stablecoins such as Tether (USDT) and USD Coin (USDC), asserting that this might worsen capital flight from South Korea. The analysis cautions that capital flight from the South Korean virtual currency market might escalate into a more significant issue, impacting South Korea’s monetary soundness and the strength of the Korean won.
In the analysis, Hashed Open Research advocates for the creation of a specialized stablecoin regulatory structure, contending that these assets “possess the traits of both payment instruments and investment assets, and consequently necessitate a specialized regulatory structure.” The analysis suggests permitting banks and non-bank entities to launch stablecoins under stringent licensing and security mandates.
The plan also contemplates overseeing stablecoins pegged to the Korean Won that are launched in other countries. Stablecoins from other countries that are tied to other traditional currencies would be allowed if they adhere to similar regulatory benchmarks. Consider it a way to maintain fairness and safeguard the reliability of the domestic currency.
