11/26/2025
207 words
1 min read
South Korea stablecoin framework stalls as regulators split over banks’ role
Overview
The development of a stablecoin framework in South Korea is facing delays due to disagreements among regulators and the Bank of Korea regarding the role of banks in issuing won-backed stablecoins. This standoff has stalled efforts that were anticipated to materialize within the year.
What Happened
Regulators in South Korea are currently divided on how much control banks should have over the issuance of stablecoins that are backed by the Korean won. This disagreement has led to a halt in the progress of a stablecoin framework that has been awaited for some time. The Bank of Korea is involved in these discussions but has not reached a consensus with other regulatory bodies.
Impact on the crypto market
- The delay in establishing a stablecoin framework may hinder the growth of stablecoin adoption in South Korea.
- Uncertainty regarding regulatory guidelines could impact investor confidence in the crypto market.
- The disagreement among regulators may lead to a fragmented approach to stablecoin regulation in the region.
- A lack of clarity on the role of banks in stablecoin issuance could affect the operational strategies of financial institutions.
- The stalling of the framework could influence global perceptions of South Korea’s regulatory environment for cryptocurrencies.
Updated: 11/26/2025, 6:37:12 AM
