Bank of Korea pushes bank‑led model for won stablecoins as legislation stalls

The Bank of Korea (BOK) has urged that Korean‑won pegged stablecoins be issued under a bank‑led model, warning private issuers could threaten monetary policy, enable FX reporting circumvention and create financial‑stability risks. In a report to the National Assembly, the BOK described won stablecoins as “currency‑like substitutes” and proposed structural safeguards: bank consortia (with possible non‑bank partners) to issue stablecoins, and a statutory interagency council to coordinate approvals and oversight. The BOK cited the U.S. GENIUS Act as an example of cross‑agency governance. Lawmakers remain split on eligibility and control—whether non‑banks can issue or banks must hold majority ownership—delaying a stablecoin framework originally expected in October and later hoped for in January; no final timeline is set. Industry groups push back, arguing clear rules could manage risks without excluding non‑bank participants. The Financial Services Commission plans further virtual asset user‑protection legislation, aligning some rules with international standards and banning interest on stablecoins. Traders should watch for: regulatory scope (who may issue won stablecoins), likely banking involvement which could centralise issuance and custody, potential limits on yields or token mechanics, and cross‑agency safeguards that could raise compliance costs. These outcomes would affect liquidity, on‑chain stablecoin flows and counterparty risk for Korean‑pegged tokens.