Korea Restricts Stablecoin Issuance to Licensed Banks

The Bank of Korea has proposed a new set of rules for the issuance of stablecoins in South Korea. According to the plan, only licensed commercial banks will be allowed to issue won-denominated stablecoins.

This move is intended to prevent money laundering and protect the financial system, which has been exposed to risks from unregulated digital assets. The Bank of Korea believes that limiting the issuance of stablecoins to banks will help control risk while still supporting growth in the crypto sector.

The regulations are based on the Digital Asset Basic Act, which was finalized in early 2026. The law requires banks to own at least 51% of any won-backed stablecoin issuer and sets clear rules for stablecoins. This approach aims to ensure that only trusted institutions handle public funds.