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South Korea is likely to end the year without a framework for locally issued stablecoins, amid ongoing disputes over the role of banks in stablecoin issuance. The country’s central bank, the Bank of Korea (BOK), and other financial regulators have clashed over the extent of banks’ involvement in issuing Korean won-backed stablecoins, delaying a framework widely expected to arrive in late 2025, the Korea JoongAng Daily reported Tuesday. According to the BOK, a consortium of banks should own at least 51% of any stablecoin issuer seeking regulatory approval in South Korea, while regulators are more open to the involvement of diverse industry players. “Banks, which are already under regulatory oversight and have extensive experience handling anti-money laundering protocols, are best positioned to serve as majority shareholders in stablecoin issuers,” a BOK official reportedly said. Banks should play leading role to curb stablecoin risks, BOK says The central bank said that giving banks a leading role in stablecoin issuance would help mitigate potential risks to financial and foreign exchange stability. The BOK also warned that allowing non-bank companies to take the lead in issuing stablecoins could undermine existing regulations that bar industrial firms from owning financial institutions, as stablecoins effectively function like deposit-taking instruments by collecting funds from users. Financial Supervisory Service Governor Lee Chan-jin, Bank of Korea Governor Rhee Chang-yong, Deputy Prime Minister Koo Yun-cheol and Financial Services Commission Chairman Lee Eog-weon (from left to right). Source: Korea JoongAng Daily “Allowing non-bank companies to issue stablecoins is essentially equivalent to permitting them to engage in narrow banking — simultaneously issuing currency and providing payment services,” the BOK reportedly wrote in a recent stablecoin study. It added that stablecoins issued by technology firms could also pose monopoly risks. Three stablecoin bills under review The Financial Services Commission (FSC) was expected to…

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Filed under: News - @ November 26, 2025 5:24 am