South Korea stablecoin rules keep banks leading won-pegged tokens

Central bank backs bank-led model

The Bank of Korea supports a bank-led structure for Korean won-pegged stablecoins. The central bank wants commercial banks to issue these tokens. It has warned that stablecoin design affects monetary policy and capital flows. The bank also links won stablecoins to foreign exchange stability risks. These positions appear in recent submissions and remarks on won-pegged stablecoins.

Stablecoins seen as currency-like substitutes

The central bank describes won-denominated stablecoins as currency-like instruments. It states that these tokens can function as programmable payment tools. It also says their introduction must consider monetary policy, foreign exchange stability, and financial risks. The bank warns that won stablecoins can help users move money around foreign exchange reporting rules. It highlights possible use to bypass existing capital control procedures.

Lawmakers delay stablecoin legislation

Lawmakers planned a first stablecoin bill for October 2025. That timetable slipped as debate continued. A dispute over whether banks should hold a majority stake in stablecoin issuers remains one source of delay. Lawmakers are still split on the ownership role of commercial banks in issuers. There is no evidence that the framework passed by early 2026.

Consortium model and shared oversight

The central bank has promoted a consortium structure for issuing won stablecoins. This structure would center commercial banks and involve public bodies. It also describes a statutory interagency policy body coordinating approvals and supervision across regulators. The report reportedly cites foreign legislative proposals with joint oversight by central banks and financial regulators as examples. These elements appear together in its stablecoin safeguards proposal.