The Bank of Korea has signaled openness to companies issuing stablecoins pegged to the South Korean won, marking a pivotal moment in the nation’s digital currency trajectory. Governor Rhee Chang-yong clarified that the bank will not obstruct won-based stablecoins, though he emphasized the importance of monitoring their links to U.S. dollar stablecoins, which could undermine capital controls and complicate foreign exchange management.
The announcement accompanies the proposed Digital Asset Basic Act, which formalizes a regulatory structure for stablecoins. Under this draft, issuers would require approval from the Financial Services Commission, meet minimum capital requirements, and implement secure custodial systems. The central bank’s role will include auditing issuer data and providing opinions on proposed tokens, with its feedback carrying weight unless the FSC objects with just cause.
Governor Rhee indicated that while supporting innovation, the central bank remains vigilant about possible FX volatility. He warned that easy conversion from won stablecoins to dollar-denominated tokens might increase dependence on the latter, prompting pressure on reserves.
He also raised concerns that private stablecoins could redirect retail deposits away from banks, potentially weakening their lending capacity. Authorities are reviewing scenarios where retail deposit outflows could impact financial stability.
Despite these caveats, the central bank’s softened stance reflects President Lee Jae‑myung’s pro-crypto agenda. New fintech appointments, including a former crypto executive as the president’s policy chief, signal a predisposition toward innovation.
Market participants are now preparing for practical implementation phases. Crypto firms in South Korea are developing compliant, dollar-anchored tokens, while regulators refine guidance on capital controls, AML, and settlement.
If the Digital Asset Basic Act becomes law, South Korea may pioneer harmonized digital currency issuance balancing innovation, stability, and global currency alignment. The next steps will determine whether won stablecoins can deliver faster payments without disrupting capital markets.
