{"id":18337,"date":"2025-11-25T16:08:00","date_gmt":"2025-11-25T15:08:00","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=18337"},"modified":"2025-11-25T16:08:00","modified_gmt":"2025-11-25T15:08:00","slug":"south-koreas-stablecoin-hits-a-roadblock-as-central-bank-tightens-control","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/11\/25\/south-koreas-stablecoin-hits-a-roadblock-as-central-bank-tightens-control\/","title":{"rendered":"“South Korea’s Stablecoin Hits a Roadblock as Central Bank Tightens Control”"},"content":{"rendered":"

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South Korea is set to wrap up the year without a plan for locally issued stablecoins. This comes as tensions brew over how much involvement banks should have in stablecoin issuance.<\/p>\n

The Bank of Korea (BOK), along with other financial regulators, has been debating the role of banks in launching Korean won-backed stablecoins<\/a>, causing delays in a framework that’s expected to roll out in late 2025, as reported by the Korea JoongAng Daily on Tuesday<\/a>.<\/p>\n

The BOK suggests that a group of banks should hold at least 51% of any stablecoin issuer seeking regulatory approval in South Korea. Meanwhile, regulators seem more interested in allowing a mix of players from various industries to participate.<\/p>\n

\u201cBanks already have the regulatory oversight and experience with anti-money laundering procedures, making them the best fit as majority shareholders in stablecoin issuers,\u201d a BOK official stated.<\/p>\n

BOK Advocates for Banks’ Leading Role to Mitigate Risks<\/h2>\n

According to the central bank, if banks take the lead in stablecoin issuance, it could help lessen risks to financial and foreign exchange stability.<\/p>\n

The BOK has cautioned that allowing non-bank companies to spearhead stablecoin issuances might violate existing laws that prevent industrial companies from owning financial institutions. Given that stablecoins act like deposit-taking instruments by collecting user funds, it’s a big concern.<\/p>\n

Financial Supervisory Service Governor Lee Chan-jin, Bank of Korea Governor Rhee Chang-yong, Deputy Prime Minister Koo Yun-cheol, and Financial Services Commission Chairman Lee Eog-weon (from left to right). Source: Korea JoongAng Daily<\/em><\/figcaption><\/figure>\n

\u201cPermitting non-bank companies to issue stablecoins is much like allowing them to engage in narrow banking\u2014where they would issue currency and also provide payment services,\u201d the BOK added in a recent stablecoin study, stressing that tech firms could create monopoly risks.<\/p>\n

Three Stablecoin Bills Under Scrutiny<\/h2>\n

The Financial Services Commission (FSC) was expected to publish a regulatory framework<\/a> for won-backed stablecoins as part of a government bill in October.<\/p>\n

According to a report<\/a> from the local publication Bloomingbit, the National Assembly\u2019s Political Affairs Committee is now analyzing three stablecoin issuance bills presented by lawmakers from both the ruling and opposition parties.<\/p>\n

These proposed laws include two from the ruling Democratic Party of Korea (DPK) and one from the opposition People Power Party (PPP).<\/p>\n

While all three bills suggest a minimum capital requirement of 5 billion won (about $3.4 million) for issuers, there are still heated discussions about whether stablecoin issuers should be allowed to pay interest on their holdings.<\/p>\n