South Korea is unlikely to see a clear regulatory framework for stablecoins pegged to the Korean won this year. The long-planned legislation has hit a major stumbling block: a dispute between the central bank and financial regulators over who should have primary authority to issue stablecoins — banks or a broader group of companies.

BOK pushes for bank dominance as regulators call for openness

According to Korea JoongAng Daily, the Bank of Korea (BOK) clashed with regulators after insisting that banks own at least 51% of any issuer of won-denominated stablecoins. The central bank argues that banks already operate under strict supervision.

“Banks are best positioned to serve as majority shareholders of stablecoin issuers,” a central bank official said, according to local media.

Regulators, however, prefer a more open model, allowing participation from fintech and tech companies. They warn that giving banks too much control could slow innovation and limit competition.

Central bank warns of destabilization and sees risks in tech giants

The BOK argues that allowing non-bank companies to issue stablecoins would lead to “narrow banking” — a situation in which firms effectively issue money and operate payment services without meeting financial-sector regulations. This would contradict rules prohibiting industrial firms from owning banks.

The central bank also warns of potential market monopolization. If large tech platforms issued stablecoins, they could gain excessive power over the country’s payment infrastructure.

Three competing bills and a dispute over interest

Pressure is building. South Korea’s National Assembly is reviewing three competing bills: two introduced by the ruling Democratic Party of Korea (DPK) and one by the opposition People Power Party (PPP).

All three require a minimum capital of 5 billion won (about $3.4 million). But they differ on whether stablecoin issuers should be allowed to pay interest on deposited funds. One bill permits it; two prohibit it.

Banks have a plan: joint stablecoin coming in 2026

The BOK’s position is not new. In June 2025, Vice Governor Ryoo Sangdai called for banks to be the primary issuers of stablecoins. And South Korea’s major banks are preparing accordingly: eight of the country’s largest institutions — from KB Kookmin to Citi Korea — plan to launch a joint won-based stablecoin in 2026.

What it means for the market

Stable cryptocurrencies pegged to national currencies are viewed globally as a key bridge between traditional finance and the Blockchain ecosystem. In South Korea, however, their future remains uncertain.

If regulators fail to agree on the banks’ role, the country may enter 2026 without a unified legal framework — just as interest in stablecoins is rising among local tech firms and financial institutions.

For everyday users, one thing is clear: stable digital assets pegged to the Korean won won’t arrive anytime soon. But once the framework is finalized, South Korea could become an important player in the global development of regulated stablecoins.

Sources:

https://koreajoongangdaily.joins.com/news/2025-11-25/business/finance/Wonbased-stablecoin-legislation-unlikely-this-year-as-BOK-regulators-clash-over-banks-role-/2461970

https://www.mt.co.kr/stock/2025/08/18/2025081814274345992

https://www.econovill.com/news/articleView.html?idxno=700880

https://www.bloomberg.com/news/articles/2025-06-10/south-korea-s-ruling-party-unveils-plan-to-allow-stablecoins?sref=323RPL5z

https://n.news.naver.com/article/011/0004559897?sid=101