The Bank of Korea (BoK) has reiterated its call for Korean won-pegged stablecoin issuance to be limited to the banking sector, warning that privately issued won stablecoins could undermine monetary policy.
According to local outlet etoday (translated), the BoK submitted a report to South Korea’s National Assembly Strategy and Finance Committee arguing that stablecoins issued independently by non-banks or private companies may result in “conflicts of interest between industry and financial capital, conflicts with the principle of separation of money and industry, such as concentration of economic power, and problems such as restructuring of the financial industry.”
The BoK reportedly urged that the introduction of won-pegged stablecoins must account not only for industrial benefits but also for monetary policy, foreign exchange stability, and financial risks.
“There is a high risk that it will be used as a means of foreign capital outflow to circumvent foreign exchange regulations,” said the BoK. For this reason, it suggested stablecoins “should be allowed first, mainly in the banking sector, which is subject to high-level regulations such as capital, soundness, and governance and has regulatory compliance capabilities.”
The BoK also urged the Strategy and Finance Committee, when preparing legislation to introduce won-pegged stablecoins, to put in place safety measures, such as establishing a banking consortium and a statutory policy organization among related institutions.
Once the risks and effects of bank-issued stablecoins have been recognized, the BoK said it would be “desirable” to “gradually expand” issuance to allow privately issued tokens as well.
This confirms the central bank’s longstanding position, which was outlined back in January when BoK Governor Rhee Chang-yong, speaking at the Asian Financial Forum in Hong Kong, warned that won-pegged stablecoins “might be used to circumvent capital flow control measures, especially when combined with U.S. dollar stablecoins.”
He reportedly added that non-bank issuance of stablecoins makes regulation particularly difficult for authorities.
The BoK doubled down on this stance in a February 18 written response to Rep. Cha Gyu-geun of the Rebuilding Korea Party, a member of the National Assembly’s Planning and Finance Committee, which said that won stablecoins “should begin issuance centered on a banking-sector consortium.”
It reportedly added that “if issuance is expanded to non-financial companies after confirming safety (under a banking-led approach), risks related to won stablecoin issuance will be minimized.”
Won stablecoin dilemma
In July 2025, the BoK submitted a proposal to the government’s policy planning committee to have all relevant financial watchdogs involved in overseeing any issuance of a won-backed stablecoin.
The central bank reportedly argued that a “pan-governmental regulatory response is necessary. A policy body consisting of relevant authorities should be considered.”
This signaled a policy shift for the central bank, which had previously been against won-backed stablecoins, a shift likely influenced by the pro-crypto administrations of U.S. President Donald Trump and South Korean President Lee Jae-myung, the latter of whom took office in June.
Despite opening itself up to the possibility—or inevitability—of won-backed stablecoins, in a July interview with CNBC, Governor Rhee Chang-yong noted concerns about their implications on the country’s capital flow management, saying that won stablecoins could “expedite easier transfer to dollar-denominated stablecoins and undermine some of our policies.”
This has increasingly become the party line, and towards the end of 2025, the central bank again warned that won-pegged stablecoins face de-peg risk, while reiterating that it wants commercial banks to take the lead in issuance.
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Source: https://coingeek.com/bank-of-korea-calls-for-bank-led-won-stablecoins/