Bank of Korea Warns Stablecoins Could Undermine FX Controls as Crypto Bill Stalls

Overview

• Speaking at the Asian Financial Forum in Hong Kong, the central bank governor warned that won‑pegged tokens could facilitate cross‑border flows outside oversight and threaten exchange‑rate stability.
• He said the risk grows when won stablecoins interact with widely used dollar stablecoins during volatile periods.
• Regulators are considering a new registration system that would allow domestic institutions to issue virtual assets under supervision.
• The central bank prefers bank‑led issuance and cautions that supervision becomes far more difficult if many non‑bank firms issue stablecoins.
• Lawmakers have postponed submitting the Digital Asset Basic Act, delaying efforts to launch spot crypto ETFs and to let listed companies trade digital assets.