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The Bank of Korea opposes the issuance of stablecoins by non-bank entities., 2026/02/24 11:06:05
The Central Bank of South Korea has asserted that the issuance of stablecoins pegged to the Korean won should be conducted solely by commercial banks.
The regulator described these tokens as “currency substitutes” and emphasized that their introduction must take into account monetary policy, exchange rate stability, and financial risks.
The central bank opposed the issuance of stablecoins by non-bank entities, stating that it contravenes the principle of separating banking and commercial activities. According to the regulator, companies should not engage in commercial operations while simultaneously performing banking functions.
The Bank of Korea also cautioned that stablecoins could facilitate circumvention of currency controls, enabling large sums to be transferred abroad without prior notification to authorities, thereby complicating transaction monitoring.
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The regulator proposed a phased approach to the implementation of stablecoins. In the initial phase, issuance should be permitted only for banks, as they are under supervision and meet capital requirements. The inclusion of other issuers would only be possible after a risk assessment.
The central bank suggested establishing a banking consortium and an inter-agency body for licensing issuers and overseeing their operations.
As an example, the regulator referenced the recently enacted GENIUS law in the United States, which governs the issuance and circulation of stablecoins. In the U.S., oversight is distributed among the Department of the Treasury, the Federal Reserve System (FRS), and the Federal Deposit Insurance Corporation (FDIC).
The Bank of Korea acknowledged that stablecoins have the potential to enhance the efficiency of the payment system, provided that reserve requirements are met and there are no threats to financial stability.
Sangmin Seo, the chair of the non-profit organization Kaia DLT Foundation, criticized the regulator’s stance, arguing that rather than limiting issuers, it would be more effective to develop uniform rules for all market participants.
Last year, the Seoul-based company BDACS launched the first stablecoin in South Korea, KRW1, on the Avalanche blockchain. Subsequently, the Financial Services Commission (FSC) announced its intention to prohibit interest payments on stablecoins.
