South Korea’s central bank has reportedly renewed its efforts to keep the issuance of won-pegged Korean stablecoins in the hands of commercial banks, warning lawmakers that privately issued digital tokens could undermine monetary policy and create fresh currency and financial stability risks.
In a report submitted to the Strategy and Finance Committee of the National Assembly of South Korea, the Bank of Korea (BOK) described won stablecoins as “currency-like substitutes” and said their introduction must take into account not only industrial benefits but also monetary policy, currency stability and financial risks. According to for local reporting.
The central bank reiterated concerns that stablecoins could be used to bypass foreign exchange regulations, including prior reporting requirements, and argued that allowing non-bank entities to independently issue coins could run counter to Korea’s separation of banking and trade rules.
She added that banks subject to capital, governance and compliance standards should be allowed in the first instance, and any expansion beyond banks should be done gradually following a risk assessment.
The report comes as lawmakers debate a delayed stablecoin framework, with one of the main sticking points being who should be allowed to issue won-pegged tokens and what level of control banks should have in any issuing entity.
Cointelegraph reached out to the Bank of Korea for more information but did not receive a response via publication.
The central bank offers hedges against the risks associated with stablecoins
The bank reportedly said programmable stablecoins could support digital asset innovation and function as payment tools, but it also introduced structural safeguards, including a bank-centric consortium model and a statutory, interagency policy authority that could coordinate approval and oversight among regulators.
The BOK reportedly cited the U.S. GENIUS Act as an example of interagency oversight involving the Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corporation.
Related: Wemade uses Chainlink for Korean stablecoin infrastructure
The debate is holding up a broader stablecoin framework
The BOK report reiterated previous warnings arguing that banks should lead the stablecoin issuance process because they are already subject to stringent regulatory requirements. However, this approach has been met with resistance from industry participants and some lawmakers.
Sangmin Seo, president of the Kaia DLT Foundation, previously told Cointelegraph that the argument for banks leading the adoption of stablecoins lacks “logical basis.” Seo said establishing clearer rules for issuers could minimize risks.
On November 25, 2025, regulators remained divided on whether banks should hold majority ownership in stablecoin issuers, leading to a delay in the adoption of regulations initially expected in October.
On December 15, lawmakers said they expected a resolution in January. However, the final schedule of legislative work has not yet been announced.
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