Financial institution of Korea Governor Rhee Chang-yong is ready to satisfy with the heads of the nation’s main industrial banks this month, with the assembly anticipated to deal with rising political stress to permit issuance of won-based stablecoins.
The gathering, scheduled to happen on the Financial institution of Korea headquarters in Seoul on June 23, comes amid heightened debate over how South Korea ought to regulate digital belongings.
Stablecoins are prone to dominate the agenda following a renewed push within the political area.
Final week, Democratic Social gathering lawmaker Min Byung-deok proposed the “Fundamental Digital Asset Act,” which incorporates provisions to permit stablecoins pegged to the Korean received and cut back capital necessities for issuers, opening the door to fintech companies.
The political shift comes after South Korea elected Lee Jae-myung as president in a snap election on June 3, triggered by the impeachment of his predecessor.
Lee, a long-time crypto advocate, has pledged to legalize spot Bitcoin ETFs and introduce a regulated stablecoin market to forestall capital outflows.
South Korean crypto exchanges transferred $40.6 billion price of digital belongings overseas in Q1 2025, with roughly half of that quantity in stablecoins similar to USDT and USDC, prompting issues over capital flight and financial sovereignty.
Whereas Lee’s administration favors the usage of stablecoins, the central financial institution has expressed warning, notably concerning non-bank issuers, as curiosity in central financial institution digital currencies has waned.
The Financial institution of Korea argues that such fashions may undermine financial coverage and spark monetary instability throughout crises.
Deputy Governor Lee Jong-ryeol lately confirmed the financial institution is exploring blockchain-linked deposit tokens as a extra restricted different.
He additionally voiced alarm over the proliferation of overseas stablecoins, calling them “essentially the most regarding half” of Korea’s digital asset panorama.
Edited by Sebastian Sinclair
