The Bank of Korea is set to tighten regulations on won-based stablecoins.

GateUser-f090498e · 2025-05-12T18:05:59+00:00

The Bank of Korea aims to expand its authority to ensure financial system stability amidst growing popularity of digital assets. All stablecoins pegged to the national currency would require approval from both the BOK and the Financial Services Commission. Professor Kim Hyung-chul warns that authorization rules may hinder local cryptocurrency projects, but direct BOK involvement could boost investor trust. The BOK has no plans to create a Bitcoin reserve fund due to the cryptocurrency market's high volatility and instability.

GateUser-f090498e

2025-05-12 18:05:59

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The BOK explained the need to expand its powers by the desire to ensure the stability of the country’s financial system and protect investors amid the rise in the popularity of digital assets. All stablecoins denominated in the national currency must obtain approval from the BOK and the Financial Services Commission (FSC), representatives of the central bank are confident.

Professor of Finance at Hanyang University, Kim Hyung-chul (, stated that if rules for the authorization of stablecoin issuers are introduced, the development of local cryptocurrency projects may be slowed down. However, direct participation of the BOK in the authorization procedures should strengthen investment companies’ trust in this category of digital assets, believes Hyung-chul.

Earlier, the Bank of Korea stated that it does not plan to form a reserve fund of bitcoins like the USA — due to the high volatility and instability of the crypto market.

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