Bank of Korea Proposes Strict Regulations on Won-Denominated Stablecoins

The Bank of Korea has submitted a report to parliament outlining its proposal to limit the issuance of won-denominated stablecoins to licensed commercial banks.

This move comes as part of a broader effort to regulate South Korea's cryptocurrency market and ensure that it aligns with international standards.

The central bank cites concerns over financial stability and systemic risk as the primary reasons for its proposal, noting that unregulated or lightly regulated firms could expose the broader economy to unnecessary shocks.