Stablecoin Issuance Should Begin With Banks, Says BOK Official

South Korea should allow banks to first issue a stable bark before gradual extension of permits to a non-thrown sectors, a senior Central Bank official said on Tuesday, as the country improves cryptocurrency policy under the administration of President Lee Jae-Myoung.

The Deputy Governor of the Korea Bank Ryoo Sang-Dai handed over a message to the heads of major commercial banks during a meeting at the Central Bank’s headquarters in Seoul, he states Yonhap Newsthe largest news agency in the country.

“It would be advisable to initially allow stable issuance primarily through banks, which are subject to higher levels of financial regulation, and gradually extend to a sector that is not a banker,” Deputy Governor Ryoo-Dai said on Tuesday.

The approach comes while South Korea grips with great growth in the digital asset trade as transactions increase of $ 12.9 billion (17.59 trillion wins) in Q3 2024 to $ 42.4 billion (57.9 trillions won) in Q1 2025.

Nearly half of all digital assets transferred abroad during the first quarter 2025. – $ 19.5 billion – was in stabilcoinicausing concern about the outflows of capital that threatens the monetary sovereignty of the nation.

“The goal is to establish a safety net with respect to the potential for the market disorder or the damage of the consumer,” Sang-Dai said.

Changing the game

The deputy governor warned that, although stabibly offered innovation potential, they could “transfer the fundamental attitude we kept to the liberalization of foreign exchange and internationalization of the Korean conquered.”

He also marked concern about the potential disorder in the market, financial instability and the need to consider models such as “narrow banking”, where institutions only provide payment services without borrowing.

Governor Bank of Korea Rhee Chang-Yong also signaled support for Stablecoins, while urging caution, according to a report from Korea Jontang Daily on Sunday.

“To be clear, the stables that are supported by the killed and [I] They do not agree with his release, “Rhee said during a press conference last Wednesday, but emphasized the need to carefully examine their potential influences on the management of foreign exchange.

President Lee, who assumed the duty This month after Snap, the priority became a stabeco’s regulation.

His administration introduced The Digital Property Act, which would allow local companies with at least $ 366,749 ($ 500 million won) in the capital to issue Stablecoin.

The Bank of Korea is also Exploring the hybrid model where his planned deposit tokens could coexist with the stable trees of the private sector on public blockchaini.

But some experts in the industry remain skeptical, with Peter Chunga, a chief of research at the Algorithic Cryptumeluta Trading Company Prego Labs, who previously said Decipher It is not “clear” to combine tokenized deposits and stable private sector trees to truly protect cash sovereignty.

Edited Sebastian Sinclair