The Financial institution of Korea’s push for the banking sector to steer the rollout of won-denominated stablecoins lacks logic, says Dr. Sangmin Search engine optimisation, the chair of the Kaia DLT Basis.
In a report launched on Monday, the central financial institution argued that banks are already topic to strict rules, together with capital, international alternate, and Anti-Cash Laundering necessities, which might assist reduce any dangers related to introducing stablecoins to the nation.
On the identical time, the BOK needs a coverage consultative physique collectively made up of foreign money, international alternate, and monetary authorities to resolve on issuer eligibility, volumes and different key concerns.
Search engine optimisation advised Cointelegraph that whereas the central banks’ issues about stablecoin dangers are comprehensible, its argument for banks main a rollout “appears to lack a logical basis.”
Clear guidelines for all is a greater means ahead: Search engine optimisation
Search engine optimisation argued that a greater answer can be to determine clear guidelines for stablecoin issuers that may “reduce financial dangers and foster innovation.”
He mentioned it might additionally permit each banking and non-banking establishments that meet these standards to “compete and reveal their strengths.”
“It could be much more invaluable if the Financial institution of Korea might present pointers on how these dangers might be mitigated and what {qualifications} are required for an issuer to be considered reliable.”
In June, BOK deputy governor Ryoo Sangdai proposed that South Korean banks be the first issuers of stablecoins within the nation to make sure a security web, earlier than step by step increasing to different sectors.
Stablecoin yield ban on the desk too
The BOK additionally needs to ban curiosity funds on stablecoins, arguing that it might instantly compete with financial institution deposits and disrupt the sector, and has as a substitute pitched the commercialization of deposit tokens, digital tokens that symbolize deposits in a financial institution or monetary establishment, to be pursued.
Search engine optimisation mentioned a complete ban on stablecoin yield can be an extreme measure and will hurt and restrict adoption.
“Whereas I agree that stablecoins themselves shouldn’t embody any yield-bearing options, I imagine it might be extreme to limit the era of extra yield by the usage of stablecoins,” he mentioned.
“Doing so would considerably restrict their utility and adoption; subsequently, I believe permitting supplementary yield creation needs to be permitted.”
South Korea’s stablecoin market heating up
At the very least eight main South Korean banks introduced plans in June to supply a stablecoin pegged to the South Korean received, with deliberate launches throughout late 2025 and early 2026.
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In the meantime, Naver Monetary, the fintech arm of South Korean tech conglomerate Naver, is reportedly transferring ahead with a plan to amass Dunamu, which operates the nation’s largest cryptocurrency alternate, Upbit, and plans to launch a Korean won-backed stablecoin venture as soon as the acquisition is full.
The crypto trade in South Korea has benefited from a extra favorable setting following the election of President Lee Jae-myung in June, who has since pushed ahead with numerous crypto-related legal guidelines, together with a invoice to legalize stablecoins.
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