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 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 gained stablecoins as “currency-like substitutes” and mentioned their introduction should account not just for industrial advantages but additionally for financial coverage, overseas trade stability and monetary dangers, in accordance to native reporting.
The central financial institution reiterated issues that stablecoins may very well be used to bypass overseas trade rules, together with prior reporting necessities, and argued that permitting non-bank entities to subject 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, must be permitted first, with any enlargement past banks continuing steadily after threat assessments.
The report lands as lawmakers debate a delayed stablecoin framework, with one of many predominant sticking factors being who must be eligible to subject 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 info, however had not acquired a response by publication.
Central financial institution proposes safeguards towards stablecoin dangers
The financial institution reportedly mentioned programmable stablecoins may help digital asset innovation and performance as cost instruments, but it surely 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 america’ GENIUS Act framework for example 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 method has confronted pushback from business contributors and a few lawmakers.
Sangmin Search engine marketing, the chair of the Kaia DLT Basis, beforehand advised Cointelegraph that the argument for banks main the stablecoin rollout lacks a “logical basis.” Search engine marketing mentioned that establishing clearer guidelines for issuers may 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 closing legislative timeline has but to be introduced.
Journal: Hong Kong stablecoins in Q1, BitConnect kidnapping arrests: Asia Specific
