The Bank of Korea (BoK) has announced its intention to “actively participate” in the creation of legislation regulating stablecoins. This was stated in a report.
The BoK emphasized the need to minimize risks to the country’s financial and monetary stability.
“Unlike other virtual assets, ‘stablecoins’ have the characteristics of a payment instrument. Their widespread use could reduce the effectiveness of monetary policy,” the document states.
The regulator warned that stablecoins could transfer risks from the cryptocurrency sector to TradFi.
South Korea is working on the second phase of forming digital asset legislation. The first law, which came into effect in July 2024, aims to protect investors and tighten requirements for crypto exchanges.
The second set of laws will address the regulation of stablecoins and establish a classification for crypto service providers, as well as rules for transparent listing and disclosure of token information, the BoK highlighted.
According to the regulator, as of December 2024, there are 18.25 million registered crypto investors in the country—over 35% of the entire population. The daily turnover of the five largest trading platforms reached $12.1 billion.
In March 2025, the Financial Intelligence Unit of South Korea’s Financial Services Commission reported the blocking of 17 foreign crypto exchanges on Google Play.