BDACS Faces Scrutiny Over KRW1 Stablecoin Fiasco

The crypto industry is pushing regulators to revoke BDACS' VASP status due to its issuance of a won-based stablecoin, KRW1. In its white paper, BDACS described its filing as a virtual asset service provider (VASP) as grounds for issuing and redeeming KRW1.

This move has sparked controversy among industry officials who argue that the company is stretching the scope of the current VASP filing system far beyond its intent.

The Financial Services Commission has decided to examine the matter, with some questioning whether BDACS' actions warrant stripping the firm of its VASP status. 'There is a problem with filing as a custody and management provider and then explaining it as if issuance and redemption had also been authorized,' said an industry official.