Catenaa, Wednesday, July 30, 2025-South Korea’s central bank has created a new virtual asset division to monitor the cryptocurrency market and guide policy on Korean won-based stablecoins, according to a local report published Tuesday.
The division, formed under the Bank of Korea’s financial payment systems bureau, will lead internal discussions and legislative planning focused on local stablecoins. The move comes amid increasing political and market momentum toward adopting a state-sanctioned digital currency infrastructure.
In a parallel move, the central bank renamed its Digital Currency Research Team as the “Digital Currency Team,” signaling a transition from research to active development of digital asset policies. This reorganization suggests a broader institutional shift toward more hands-on digital currency engagement.
Stablecoins denominated in won have gained political support under President Lee Jae Myung, who has promised to develop local currency-based digital assets to reduce capital outflows. A ruling party lawmaker recently introduced a bill aimed at creating a legal foundation for KRW stablecoins.
South Korea’s private sector has been quick to act. Major banks and payment platforms have filed trademark applications for stablecoin tickers, positioning themselves for early entry.
The central bank reportedly paused its central bank digital currency (CBDC) project to evaluate how stablecoins are progressing. BOK Governor Lee Chang-yong has voiced support for won-based stablecoins, though he warned of potential risks if non-bank entities enter the market unchecked.
The developments place South Korea at the center of the global stablecoin conversation, particularly as other nations including the United States press ahead with regulatory frameworks.
