Bank of Korea Says Private Firms Should Operate Stablecoins
The Bank of Korea will not directly operate stablecoin businesses, Governor Hyun Song Shin told lawmakers on October 12. He said private companies should issue and operate stablecoins, while the central bank advises on monetary stability and payment systems. His remarks do not announce new licensing rules or reverse the Bank of Korea’s earlier preference for bank-led issuance of won-backed stablecoins.
Shin distinguished private stablecoins from Project Hangang, which tests institutional digital currency for interbank settlement and deposit tokens issued by commercial banks. Banks would continue managing customer accounts and information. The Bank of Korea has not pursued a general-purpose retail CBDC since 2023, and further deposit-token payment trials are planned for 2026.
For crypto traders, the comments clarify the central bank’s intended role but do not resolve South Korea’s pending stablecoin regulations. The immediate market impact is therefore likely limited, though future rules on won-backed stablecoins could affect local payment and settlement projects.
Neutral
The announcement is a policy clarification rather than a launch, ban or change to stablecoin rules. It confirms that the Bank of Korea does not plan to run stablecoin businesses and separates private stablecoins from Project Hangang’s institutional settlement system. It also does not overturn the central bank’s previously stated preference for bank-led issuance of won-backed stablecoins.
In the short term, this is unlikely to produce a meaningful directional signal for major crypto assets. Traders may monitor Korean policy developments and any response from banks or stablecoin firms, but the remarks provide no immediate change to issuance, access or liquidity. Similar clarifications about CBDCs and payment pilots have generally been more relevant to local fintech and payment-sector expectations than to broad crypto prices.
Longer term, the distinction could matter if South Korea adopts rules that enable bank-led won stablecoins or expands deposit-token trials. That could support regulated blockchain payment and settlement activity, while leaving uncertainty for nonbank issuers. Until legislation or concrete implementation details emerge, the effect on market stability and trading is likely limited.