The Bank of Korea once again calls for commercial banks to lead the issuance of the Korean won stablecoin, but the legislative process remains deadlocked.

Deep Tide TechFlow News, February 23 — According to Cointelegraph, the Bank of Korea (BOK) submitted a report to the National Assembly’s Strategy and Finance Committee, once again advocating that the issuance authority for Korean won-pegged stablecoins be limited to commercial banks. It also proposed establishing a bank-centered joint issuance mechanism and a cross-departmental legal regulatory coordination body, while referencing the joint regulatory framework established by the U.S. GENIUS Act, involving the Department of the Treasury, the Federal Reserve, and the Federal Deposit Insurance Corporation.

The Bank of Korea classifies the Korean won stablecoin as a “quasi-monetary substitute,” warning that independent issuance by non-bank entities could interfere with monetary policy and pose risks of circumventing foreign exchange reporting regulations. It also conflicts with the principle of separation between banks and commercial entities. The central bank stated that priority should be given to allowing bank institutions, which are subject to capital, governance, and compliance standards, to participate, while involvement from other entities should be gradually promoted after risk assessments.

Legislatively, disputes over the eligibility criteria for issuing Korean won stablecoins and the proportion of bank ownership have caused delays in related bills. Originally expected to be completed by October 2025, the legislation was postponed in November due to disagreements among regulatory agencies. In December, lawmakers anticipated reaching a decision in January this year, but the final legislative timetable has not yet been announced. Sangmin Seo, chairman of the Kaia DLT Foundation, previously publicly questioned the logic behind bank-led issuance, believing that establishing clear rules for issuers is an effective way to reduce risks.