Lawmakers Split Over Who Should Issue Won Stablecoins

Crypto News Regulation

Written by Aaron S.,

Editor-In-Chief

Last Updated: January 27, 2026

Key Takeaways

South Korea’s plan to regulate digital assets is delayed as lawmakers remain split on stablecoin issuance and oversight;
The central bank warns that won-pegged stablecoins could disrupt currency controls, especially during volatile market periods;
Officials disagree on whether banks alone should issue stablecoins or if supervised non-bank firms should also be allowed.

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Lawmakers Split Over Who Should Issue Won Stablecoins

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South Korea’s efforts to create clear rules for digital assets are facing delays, mainly over how to handle stablecoins linked to the Korean won.

Lawmakers remain divided on who should issue them and how they should be regulated.

At the Asian Financial Forum in Hong Kong, Bank of Korea Governor Lee Chang-yong stated that the government is studying a plan to allow local institutions to issue virtual assets.

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He noted that, while the idea is under review, stablecoins still raise concerns, especially regarding their impact on foreign exchange controls.

Lee explained that a stablecoin pegged to the won would most likely be used for international transfers. During market swings, he warned that using both won and dollar stablecoins could make it easier to move money across borders in ways that bypass capital flow rules.

His comments come as lawmakers debate the Digital Asset Basic Act, which aims to set broad rules for crypto activity. According to Chosun Ilbo, the bill’s submission to the National Assembly has been delayed.

The central bank believes only banks should issue stablecoins to reduce financial and currency risks. However, some industry groups want non-bank companies to be allowed as well, provided they are supervised.

Financial officials have discussed possible compromises, but no progress has been made so far.

South Korea’s financial authorities recently reconsidered a rule that requires each cryptocurrency exchange to have a single banking partner. What does the rule cover? Read the full story.