Bank of Korea Introduces Virtual Asset Division as Stablecoin Discussions Advance

The Bank of Korea (BOK) has launched a new division focused on virtual assets to oversee the cryptocurrency market and participate in legislative discussions, News1 reported.

The division, operating under the financial payment systems bureau, will lead the BOK’s internal conversations on Korean won-denominated stablecoins. Additionally, the central bank has renamed its “Digital Currency Research Team” to the “Digital Currency Team,” indicating a more proactive approach to digital currency development.

South Korea’s stablecoin discussions gained traction after the US moved to regulate USD-backed stablecoins during the Trump administration. President Lee Jae Myung has since emphasized the need for a local stablecoin market to prevent capital flight, while a ruling party lawmaker proposed a legal framework for KRW stablecoins.

In response, major South Korean banks and payment firms have filed trademark applications related to stablecoin services.