"The proposed Digital Asset Basic Act has slowed as regulators clash over whether stablecoins should be treated as bank-like money or as a licensed digital-asset product. At the center is the Bank of Korea's push for a "banks-first" model, ideally through bank-led consortia with at least 51% bank ownership, arguing that stablecoins could, in their view, spill over into monetary policy, capital flows and financial stability if they scale too quickly."
"If stablecoin use scales, it could amplify cross-border flows and complicate foreign-exchange management, especially in a market where crypto participation and retail exposure are unusually high. That is why the Bank of Korea continues to frame issuer rules as a "financial stability" decision. Officials argue that a cautious, staged rollout, starting with tightly regulated banks, reduces the risk of sudden outflows"
South Korea's proposed Digital Asset Basic Act is stalled by a dispute over who may issue won-backed stablecoins. The Bank of Korea wants a banks-first approach using bank-led consortia with at least 51% bank ownership to limit risks to monetary policy, capital flows and financial stability. The Financial Services Commission and lawmakers worry a bank-dominated model would curb competition and slow innovation. Stablecoins already channel local traders to offshore liquidity and could amplify cross-border flows and complicate foreign-exchange management. Officials prefer a cautious, staged rollout beginning with tightly regulated banks. Firms like Toss plan won-backed stablecoins once rules are finalized, and the impasse may push the bill into 2026.
Read at Cointelegraph
Unable to calculate read time
Collection
[
|
...
]