Bank of Korea Renews Push for Bank-Led Won Stablecoin Issuance
South Korea’s central bank has renewed its recommendation that issuance of Korean won-pegged stablecoins be led by commercial banks, and proposed a bank-run consortium and a statutory interagency body to oversee issuer approvals, according to local media reports. The Bank of Korea (BOK) also cited the United States’ GENIUS Act as a potential model for cross-agency supervision.
In a report submitted to the National Assembly’s Strategy and Finance Committee, the BOK described won-denominated stablecoins as “currency-like substitutes” and said their rollout should weigh industrial benefits alongside implications for monetary policy, foreign-exchange stability, and financial risk, according to local reporting.
The central bank reiterated that stablecoins could be used to circumvent foreign-exchange rules, including prior reporting requirements, and warned that permitting non-bank issuers to operate independently could conflict with Korea’s separation of banking and commerce. It argued that banks—already subject to capital, governance, and compliance standards—should be allowed to issue first, with any expansion beyond banks proceeding gradually following risk assessments.
Central bank outlines safeguards for stablecoin risks
The BOK said programmable stablecoins may facilitate digital asset innovation and serve as payment instruments, but proposed structural safeguards, including a bank-centered consortium model and a statutory interagency policy body to coordinate approvals and supervision among regulators.
The bank referenced the GENIUS Act framework in the United States as an example of cross-agency oversight involving the Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corporation.
Legislative debate delays broader stablecoin framework
The report arrives as lawmakers continue to discuss a delayed regulatory framework for stablecoins, with key points of contention including which entities can issue won-pegged tokens and the extent of bank control in any issuing structure.
The bank-led approach has faced resistance from some industry participants and lawmakers who favor clearer, issuer-agnostic rules to manage risks.
On Nov. 25, 2025, regulators remained divided over whether banks should hold a majority stake in stablecoin issuers, contributing to a delay in legislation that had initially been expected in October.
On Dec. 15, lawmakers said they anticipated a resolution in January. A final legislative timeline has not yet been announced.
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