Bank of Korea renews call for bank-led won stablecoins as bill stalls

CoinTelegraph

by Ezra Reguerra

February 23, 2026

AI-Generated Deep Dive Summary

The Bank of Korea (BOK) has reiterated its stance on keeping Korean won-pegged stablecoin issuance under the control of commercial banks, warning that privately issued digital tokens could pose risks to monetary policy and financial stability. In a report submitted to South Korea’s National Assembly Strategy and Finance Committee, the central bank emphasized that stablecoins should be treated as “currency-like substitutes” requiring careful regulation to ensure they align with broader economic and financial objectives. The BOK has proposed establishing a bank-led consortium and a statutory interagency body to oversee issuer approvals, drawing inspiration from the US GENIUS Act as a potential model. The central bank’s renewed push comes amid concerns that stablecoins could be used to circumvent foreign exchange regulations, such as prior reporting requirements. Additionally, the BOK has expressed worries that allowing non-bank entities to issue stablecoins independently could conflict with Korea’s principle of separating banking and commerce. These measures aim to mitigate risks related to financial stability, monetary policy, and foreign exchange, which are critical for maintaining economic order in South Korea. The report highlights the importance of balancing the industrial benefits of stablecoins with their potential risks. While digital assets offer opportunities for innovation and financial inclusion, they also raise concerns about regulatory arbitrage and market manipulation. By keeping won-pegged stablecoin issuance within the banking sector, the BOK seeks to ensure that these instruments do not undermine traditional financial systems or create new vulnerabilities in the economy. This development underscores South Korea’s ongoing efforts to navigate the complexities of cryptocurrency regulation. The country has long been a key player in the global crypto landscape, and its approach to stablecoins reflects a broader tension between fostering innovation and safeguarding financial stability. As regulatory frameworks evolve, the BOK’s proposal serves as a cautionary tale for other nations grappling with similar challenges. For readers interested in crypto and blockchain, this story highlights the growing importance of regulatory oversight in shaping the future of digital assets. The BOK’s stance also raises questions about the role of non-bank entities in the stablecoin market and the potential risks they may pose to traditional financial systems. As South Korea continues to refine its approach, it will be closely watched by crypto

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Originally published on CoinTelegraph on 2/23/2026