(Feb 23): South Korea’s central bank has reiterated its position that regulators should initially authorise only licensed commercial banks to issue won-denominated stablecoins, citing concerns over money laundering and financial stability risks.
The Bank of Korea’s renewed caution comes as trust in the country’s digital-asset industry has been shaken by an incident this month in which crypto exchange Bithumb erroneously transferred US$40 billion worth of "ghost" Bitcoin to clients. That episode has intensified scrutiny of a crypto market that has at times eclipsed equities in retail participation.
“It would be desirable to allow stablecoins primarily within the banking sector first,” the BOK said in a report submitted to parliament Monday (Feb 23), as banks are subject to high regulatory standards on capital adequacy, financial soundness, corporate governance and strong compliance capabilities.
The central bank said that such a token could be used to bypass the country’s foreign exchange regulations that are largely applied only to banks. It also highlighted potential problems with allowing non-bank entities to issue the token, including possible breaches of the long-standing principle that restricts non-financial companies from owning or controlling banks.
The BOK is recommending expanding participation to non-bank institutions after assessing their capacity to absorb risk.
Central banks and financial regulators across Asia have been proceeding cautiously with stablecoin issuance, allowing only limited entities to mint tokens under strict supervision. The Hong Kong Monetary Authority adopted a “reasonably high bar” when considering applications for a stablecoin issuer licence, according to a statement in August 2025.
See also: Bitcoin jumps above US$66,000 ahead of Trump address
Japan’s Financial Services Agency has allowed a proof-of-concept for token issuance led by three megabanks, according to Finance Minister Satsuki Katayama in November.
Souring sentiment toward crypto following the Bithumb incident, along with the BOK’s firm stance on stablecoins, likely poses additional obstacles for Korean President Lee Jae Myung, who pledged broad deregulation of the digital-asset industry.
South Korean lawmakers have been discussing the next phase of digital-asset legislation that includes stablecoins. Han Jeoung-ae, policy committee chair of the ruling Democratic Party, said the panel would aim to submit the bill in February.
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