South Korea Opens to Stablecoins With Strict Oversight

South Korea Considers Green Light for Stablecoins

On June 18, 2025, BOK Governor Rhee Chang-yong clarified that the central bank of South Korea is not going to be opposed to the idea of stablecoins, marking a significant shift in the country’s digital asset stance.

While not fully embracing them yet, the BOK  has begun outlining a framework where such stablecoins may be operated by the locals under the strict guidelines of national Finance stability at its core. 

However he raised strong concerns about the potential impact on the country's foreign exchange market, especially if these won-based stablecoins are freely exchangeable with US dollar -pegged tokens.

“The stablecoin system must not harm our monetary policy or create capital flow volatility” Said Governor Rhee Chang-yong.”

A New Digital Chapters begins 

It is a very surprising yet forward-looking shift. Bank of Korea Governor Rhee Chang-Yong has hinted that the central bank is open to the idea of digital assets like stablecoins- as long as they’re backed by the Korean win.

New Rules on the Horizon: The Digital Asset Basic Act 

The shift in the Central Bank’s tone comes just as the government gears up to introduce the Digital Asset Basic Act- a landmark bill that could reshape how crypto works in South Korea. 

Backed by the President Lee Jae-myung and his ruling party, the main focus of the bill is to announce officially that the stablecoins coins licensed to a pirate firm are acceptable in South Korea.

Under the proposed rules, issuers must:

• Hold at least ₩500 million in capital (around $368,000)

• Fully back their tokens with reserves, ensuring one-to-one value

• Keep user funds separate and protected in case of bankruptcy. 

The Financial Services Commission (SFC) will regulate these digital assets. The Bank of Korea is pushing for a bigger say - especially in approving new issuers to make sure no players threaten the country's financial stability. 

Accountability Still Matters 

The central bank isn’t dropping its guard by compromising on them. It warns that the spread of stablecoins poorly managed could lead to “coin runs”, payment distributions, and weakened monetary policy. 

BOK position? Innovation is welcome, but stability comes first. 

What’s Next? 

A draft of the Bill is expected later in 2025, with potential implementation by early 2026. In the meantime, the BOK will meet with major banks and financial leaders to redefine its approach. 

Won-backed stablecoins could soon become a regulated reality in South Korea- but only if they play by the rules.