Kaia DLT Demands Clear Stablecoin Regulation, Rebukes BOK
South Korea’s stablecoin regulation debate intensified after the Bank of Korea (BOK) proposed a bank-only issuance model and a ban on stablecoin yields. Dr. Sangmin Seo, chair of the Kaia DLT Foundation, criticized the bank-led approach as illogical and warned that a total yield ban would hinder stablecoin adoption and utility. He urged the BOK to establish clear stablecoin regulation for all issuers—banking and non-banking—covering risk mitigation, capital requirements and anti-money laundering standards. At least eight major banks plan won-pegged stablecoin launches in late 2025 and early 2026, while Naver Financial’s pending acquisition of Dunamu (Upbit) signals further market expansion. Clear rules, Seo believes, will foster competition, mitigate monetary risks and drive broader stablecoin adoption.
Bullish
The push for clear stablecoin regulation and open issuance supports long-term market growth by building issuer trust and legal certainty. While the BOK’s bank-only issuance model and yield ban introduce short-term uncertainty, Seo’s call for uniform rules for all issuers may unlock broader stablecoin adoption. Upcoming launches by major banks and a new entrant from Naver Financial signal expanding supply. Overall, the prospects of competition, clear guidelines, and diversified yield options make the outlook bullish for KRW-pegged stablecoins.