"South Korea's next major crypto law is being held up by a seemingly simple question: Who gets to issue a won-backed stablecoin? The proposed Digital Asset Basic Act has slowed as regulators clash over whether stablecoins should be treated as bank-like money or as a licensed digital-asset product. At the center is the Bank of Korea's push for a "banks-first" model, ideally through bank-led consortia with at least 51% bank ownership,"
"arguing that stablecoins could, in their view, spill over into monetary policy, capital flows and financial stability if they scale too quickly. The Financial Services Commission and lawmakers, meanwhile, are wary that a bank-dominated regime could materially limit competition and slow innovation. Stablecoins in South Korea are already important to local traders who move value into crypto markets, often via dollar-pegged tokens to access offshore liquidity."
South Korea faces a regulatory standoff over who may issue won-backed stablecoins, delaying the Digital Asset Basic Act into 2026. The Bank of Korea favors a banks-first model, ideally requiring bank-led consortia with at least 51% bank ownership, citing risks to monetary policy, capital flows and financial stability if stablecoins scale rapidly. The Financial Services Commission and lawmakers fear a bank-dominated regime would limit competition and slow innovation. Stablecoins already move value into crypto markets via dollar-pegged tokens and could amplify cross-border flows and complicate foreign-exchange management. Firms like Toss plan won-backed stablecoins pending final rules.
Read at Cointelegraph
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