South Korea’s central financial institution has reportedly renewed its push to maintain Korean won-pegged stablecoin issuance within the palms of business banks, warning lawmakers that privately issued digital tokens might 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 additionally for financial coverage, overseas alternate stability and monetary dangers, in response to native reporting.
The central financial institution reiterated considerations that stablecoins might be used to bypass overseas alternate rules, together with prior reporting necessities, and argued that permitting non-bank entities to challenge them independently might 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 enlargement past banks continuing progressively after danger assessments.
The report lands as lawmakers debate a delayed stablecoin framework, with one of many important sticking factors being who needs to be eligible to challenge 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 obtained a response by publication.
Central financial institution proposes safeguards in opposition to stablecoin dangers
The financial institution reportedly mentioned programmable stablecoins might assist digital asset innovation and performance as cost instruments, however it additionally floated structural safeguards, together with a bank-centered consortium mannequin and a statutory interagency coverage physique that might coordinate approvals and supervision throughout regulators.
The BOK reportedly cited america’ GENIUS Act framework for instance of cross-agency supervision that includes 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 might decrease dangers.
On Nov. 25, 2025, regulators remained break 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 ultimate legislative timeline has but to be introduced.
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