South Korea’s central financial institution has reportedly renewed its push to maintain Korean won-pegged stablecoin issuance within the fingers of economic banks, warning lawmakers that privately issued digital tokens may undermine financial coverage and create new foreign-exchange and financial-stability dangers.
In a report submitted to South Korea’s Nationwide Meeting Technique and Finance Committee, the Financial institution of Korea (BOK) described received stablecoins as “currency-like substitutes” and mentioned their introduction should account not just for industrial advantages but in addition for financial coverage, international alternate stability and monetary dangers, based on native reporting.
The central financial institution reiterated considerations that stablecoins could possibly be used to bypass international alternate laws, together with prior reporting necessities, and argued that permitting non-bank entities to situation them independently may battle with Korea’s separation of banking and commerce ideas.
It added that banks, that are topic to capital, governance and compliance requirements, needs to be permitted first, with any growth past banks continuing progressively after threat assessments.
The report lands as lawmakers debate a delayed stablecoin framework, with one of many most important sticking factors being who needs to be eligible to situation won-pegged tokens and the way a lot management banks ought to maintain in any issuing entity.
Cointelegraph reached out to the Financial institution of Korea for extra data, however had not acquired a response by publication.
Central financial institution proposes safeguards in opposition to stablecoin dangers
The financial institution reportedly mentioned programmable stablecoins may assist digital asset innovation and performance as cost instruments, nevertheless it additionally floated structural safeguards, together with a bank-centered consortium mannequin and a statutory interagency coverage physique that would coordinate approvals and supervision throughout regulators.
The BOK reportedly cited the USA’ GENIUS Act framework for instance of cross-agency supervision that entails the Treasury Division, Federal Reserve and the Federal Deposit Insurance coverage Company.
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Debate stalls broader stablecoin framework
The BOK’s report echoes its earlier warnings, which argue that banks ought to lead the rollout for stablecoin issuance since they’re already topic to strict regulatory necessities. Nevertheless, that strategy has confronted pushback from trade members and a few lawmakers.
Sangmin Website positioning, the chair of the Kaia DLT Basis, beforehand advised Cointelegraph that the argument for banks main the stablecoin rollout lacks a “logical basis.” Website positioning mentioned that establishing clearer guidelines for issuers may reduce dangers.
On Nov. 25, 2025, regulators remained cut up over whether or not banks ought to maintain a majority stake in stablecoin issuers, resulting in a delay in laws initially anticipated in October.
On Dec. 15, lawmakers mentioned they anticipated a decision in January. Nevertheless, a last legislative timeline has but to be introduced.
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