<div id="readability-page-1"><div><div><p>South Korea’s stablecoin debate is turning into a high-stakes power struggle.</p><p>As lawmakers remain deadlocked over who should control Korean won-pegged stablecoins, the Bank of Korea (BOK) has renewed its call for a bank-led issuance model, warning that privately issued digital tokens could undermine monetary policy, destabilize foreign exchange controls and introduce systemic financial risks.</p><div><div><blockquote><p dir="ltr" lang="en">LATEST: 🇰🇷 South Korea's KBank has filed 13 trademark applications related to stablecoin wallets ahead of its March 5 IPO, with reports suggesting it could roll out remittances, payments and settlements. pic.twitter.com/qe7lhZh3mU</p>— CoinMarketCap (@CoinMarketCap) February 3, 2026</blockquote></div></div><p>At the heart of the dispute: Who controls the future of digital money in South Korea — banks or the broader crypto industry?</p><p>In a report submitted to the National Assembly’s Strategy and Finance Committee, the BOK described won-backed stablecoins as “currency-like substitutes,” arguing that their rollout cannot be evaluated solely through the lens of innovation or industrial growth.</p><p>The central bank cautioned that stablecoins could be used to bypass foreign exchange regulations, including prior reporting requirements, if non-bank entities are allowed to issue them independently. Such risks, it said, extend beyond consumer protection and into the core of monetary sovereignty.</p><p>The BOK further argued that allowing private, non-bank firms to control issuance could conflict with South Korea’s long-standing separation of banking and commerce — a principle designed to limit systemic concentration of financial power.</p><p>Instead, the central bank is pushing for commercial banks — already subject to capital requirements, governance standards and strict compliance rules — to lead issuance during this nascent stage. Any expansion to non-bank players, it suggested, should occur gradually and only after comprehensive risk assessments.</p><div><div><blockquote><p dir="ltr" lang="en">BREAKING: South Korea's Democratic Party just dropped the hammer on crypto regs! Finalized the &#34;Digital Asset Basic Law&#34; submitting BEFORE Lunar New Year! Stablecoin issuers? Minimum 5B won (~$3.5M) capital requirement. Bank of Korea powers &amp; shareholder limits still in the… pic.twitter.com/6jVHaJlR6I</p>— Xaif Crypto🇮🇳|🇺🇸 (@Xaif_Crypto) January 28, 2026</blockquote></div></div><p>While warning of risks, the BOK acknowledged that programmable stablecoins could enhance payment efficiency and support digital asset innovation. But its proposed solution centers on structural safeguards.</p><p>The central bank has floated a bank-centered consortium model, rather than fragmented issuance by independent private firms. It also called for a statutory interagency body to coordinate approvals and supervision across regulators — effectively institutionalizing oversight.</p><div><div><blockquote><p dir="ltr" lang="en">SEOUL, South Korea – March 2025 – In a definitive move signaling the maturation of digital assets within traditional finance, Hana Financial Group has spearheaded the formation of a powerful consortium to issue a regulated stablecoin.https://t.co/S4ZNKxQt02pic.twitter.com/rzf26B13jJ</p>— BitcoinWorld Media (@ItsBitcoinWorld) January 16, 2026</blockquote></div></div><p>In doing so, the BOK pointed to the United States’ GENIUS Act as a reference framework. That approach involves cross-agency supervision by the Treasury Department, Federal Reserve and Federal Deposit Insurance Corporation — a model that aligns innovation with centralized regulatory coordination.</p><p>By invoking the US example, the BOK signals that South Korea’s stablecoin framework is not just a domestic debate but part of a broader global alignment toward tighter institutional oversight of digital payment instruments.</p><p>Despite the central bank’s renewed intervention, lawmakers remain divided.</p><p>One of the key sticking points is whether banks should be required to hold a majority ownership stake in any stablecoin issuer — a condition that critics argue would effectively sideline fintech and crypto-native firms.</p><p>Industry figures, including Sangmin Seo of the Kaia DLT Foundation, have questioned the logic of a bank-only model, arguing that a technology-neutral licensing regime could manage risks without limiting competition.</p><div><div><blockquote><div dir="ltr" lang="en"><p>South Korea’s major banks are positioning ahead of stablecoin regulation.</p><p>Large banking groups have already begun forming partnerships and internal frameworks in anticipation of won-denominated stablecoins. Rather than waiting for final rules, institutions are preparing… pic.twitter.com/N3dGgVuzvF</p></div>— ELYSIA (@ELYSIA_HQ) January 23, 2026</blockquote></div></div><p>Regulatory disagreement has already delayed the bill beyond its initial October target. Lawmakers later suggested a January resolution, but no definitive timeline has been announced.</p><p>The longer the stalemate continues, the more uncertainty surrounds South Korea’s digital won ambitions.</p><p>The BOK’s renewed push underscores how sensitive the design of a won stablecoin regime has become. For the central bank, the issue is not simply about payments innovation — it is about preserving control over monetary policy, foreign exchange flows and systemic stability.</p><div><div><blockquote><p dir="ltr" lang="en">South Korea’s stablecoin regulation is stuck — lawmakers can’t agree on whether issuers should be centralized or decentralized. The legal limbo is stalling adoption and exposing hard questions about who really controls money in the age of crypto. 🇰🇷 #Stablecoins#DeFi… pic.twitter.com/MdDAY9Puu3</p>— ₿itBlitz (@BitBlitz) December 30, 2025</blockquote></div></div><p>For industry advocates, however, the debate risks becoming a structural bottleneck that could slow innovation and entrench bank dominance in the next generation of digital finance.</p><p>As global regulators converge on stricter stablecoin frameworks, South Korea now faces a defining choice: embrace a bank-controlled digital currency model or craft a more open system that balances competition with oversight.</p><p>Until that decision is made, the future of won-pegged stablecoins remains suspended between innovation and institutional control.</p></div></div></div>

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<p>The Bank of Korea (BOK) is advocating for a bank-led model for issuing won-pegged stablecoins amid a legislative deadlock over digital currency control in South Korea. The BOK warns that allowing private firms to issue stablecoins could undermine monetary policy and introduce systemic risks. It proposes a consortium model for banks to lead issuance, emphasizing the need for regulatory oversight. As lawmakers remain divided on the issue, the future of South Korea's digital currency framework hangs in the balance, with implications for innovation and financial stability.</p>

- South Korea's stablecoin debate involves lawmakers and the Bank of Korea (BOK), with tensions over control of won-pegged stablecoins.  
- The BOK advocates for a bank-led issuance model, arguing privately issued tokens may threaten monetary policy and financial stability, while industry figures call for a technology-neutral approach to avoid limiting competition.  
- Regulatory disagreements are delaying a final resolution, leaving South Korea's stablecoin future uncertain as the nation weighs the balance between innovation and centralized control.

Bank of Korea Pushes Bank-Controlled Won Stablecoins as Lawmakers Stall on Digital Currency Bill