The Bank of Korea (BOK) plans to take an active role in shaping South Korea’s upcoming stablecoin regulations, warning that widespread use of stablecoins could undermine monetary policy and threaten financial stability.
The central bank aims to provide regulatory guidance as the government drafts its second major crypto bill, which will focus on stablecoin oversight, crypto service classifications, and disclosure rules. This follows the July 2024 rollout of South Korea’s initial crypto law centered on investor protection.
The BOK also noted that over 35% of the population—18.25 million people—are crypto investors, with major exchanges seeing $12.1 billion in daily volume. Meanwhile, BOK continues to test its CBDC, with peer-to-peer transfer trials set for October.
In a recent report, the central bank said stablecoins differ from other digital assets due to their use as payment tools and could introduce crypto-related volatility into South Korea’s financial system. The BOK plans to play an active role in shaping the country’s regulatory framework to address these concerns.
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