Standing Commissioner Ahn Changguk of the Financial Services Commission Attends Financial Stability Board (FSB) Plenary Meeting

Ahn Changguk, Standing Commissioner of the Financial Services Commission. Photo by Kang Jinhyung

The Financial Services Commission announced on November 20 that Ahn Changguk, Standing Commissioner, attended the Financial Stability Board (FSB) plenary meeting held in Riyadh, Saudi Arabia, from November 18 to 19.

The meeting covered topics such as financial stability outlook, the current state of stablecoins, modernization of regulation and supervision, FSB crisis preparedness activities, and non-bank financial intermediation (NBFI).

Regarding financial stability, member countries assessed that, although the sudden increase in market volatility following the U.S. tariff announcement in April had generally stabilized, uncertainties in the economic outlook and underlying vulnerabilities still persist.

On the spread of stablecoins, member countries shared cases of stablecoin usage and key vulnerabilities in each country. They also discussed efforts to institutionalize stablecoins and agreed on the need to closely monitor vulnerabilities that may arise from operators issuing stablecoins in multiple countries.

Standing Commissioner Ahn stated, "As the use of stablecoins expands for cross-border transactions and both online and offline payments, concerns have been raised regarding foreign exchange and money laundering risks, making close monitoring from a financial stability perspective necessary." He emphasized, "Since the pace of institutionalizing stablecoins differs by country, it is important to review FSB-level recommendations and actively cooperate among member countries to prevent 'regulatory arbitrage' arising from cross-country regulatory differences."

Regarding the modernization of regulation and supervision, he mentioned, "It is necessary to approach the issue with a balanced perspective, carefully reviewing existing regulations to compare policy effectiveness and the burden on regulated entities." He also shared the Korean case, stating, "Korea is actively discussing the modernization of regulation and supervision as part of 'productive finance,' aiming to mitigate real estate concentration risks in capital and redirect funds toward productive sectors."

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