South Korea’s central bank is reportedly taking steps to strengthen its oversight of the crypto sector by launching a virtual asset committee and restructuring its digital currency division. The newly named Virtual Asset Team will handle matters related to stablecoins and virtual assets, and work with the government throughout the legislative process, according to Yonhap News.

The move comes amid rising interest from South Korean banks in issuing stablecoins tied to the national currency, the won. Proposed legislation around stablecoins has also prompted the central bank to step up its involvement.

Crypto remains popular in South Korea, and the country recently elected President Lee Jae Myung, who ran on a pro-crypto platform that supports stablecoins and crypto exchange-traded funds.

The central bank’s Digital Currency Research Team has been renamed to the “Digital Currency Team” to reflect its shift from theoretical research to more practical digital currency initiatives. Two additional units were renamed as well: the Digital Currency Technology Team, focused on research and technical development, and the Digital Currency Infrastructure Team, which is working on a platform for managing digital vouchers and testing systems based on deposit tokens.

Although the Bank of Korea paused its retail CBDC test at the end of June—citing support for private-sector stablecoins and cost concerns from banks—CBDC projects are expected to continue.

A central bank official said that work may resume once legal uncertainties are addressed.

Bank of Korea Governor Lee Chang-yong reportedly stressed the importance of having a digital currency in the future, regardless of its exact form.

In June, eight of the country’s major banks announced plans to launch a stablecoin pegged to the won by late 2025 or early 2026. BOK Deputy Governor Ryoo Sangdai has expressed support for banks leading the way in stablecoin issuance before gradually extending participation to other sectors.

Sources:

https://cointelegraph.com/news/south-korean-central-bank-creates-virtual-asset-division

https://www.yna.co.kr/view/AKR20250728141400002?input=1195m

https://it.chosun.com/news/articleView.html?idxno=2023092144890

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