Bank of Korea Pushes to Keep Won Stablecoins Under Bank Control

[tradelikepro]

The Bank of Korea has renewed its call for commercial banks to take the lead in issuing Korean won–pegged stablecoins, warning lawmakers that privately issued digital tokens could pose risks to monetary policy and financial stability.

In a report submitted to the National Assembly’s Strategy and Finance Committee, the central bank described won-backed stablecoins as “currency-like substitutes,” arguing that their introduction must consider broader macroeconomic consequences — including foreign exchange stability and systemic risk — not just industrial innovation.

The BOK warned that stablecoins could potentially be used to bypass foreign exchange regulations, such as reporting requirements. It also cautioned that allowing non-bank entities to issue stablecoins independently could conflict with South Korea’s long-standing separation of banking and commerce principles.

Instead, the central bank proposed that banks — already subject to capital, governance and compliance standards — be allowed to issue stablecoins first. Any expansion beyond the banking sector, it said, should occur gradually and only after thorough risk assessments.

The report arrives as lawmakers continue debating a delayed regulatory framework for stablecoins, with issuer eligibility emerging as a central sticking point.

[madtrader]

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