South Korea weighs bank-majority rule for won stablecoins

The proposal would put banks in charge of issuing the tokens while allowing cryptocurrency exchanges and technology companies to handle distribution, customer transactions and merchant settlement. The bill is expected to cover issuance, distribution, licensing and consumer protection, but key provisions remain unsettled after delays over issuer eligibility and ownership limits for cryptocurrency exchanges.

The Bank of Korea has backed a bank-centered approach, citing the potential for privately issued stablecoins to become widely used in payments and affect financial markets. The Financial Services Commission has said issuer ownership requirements have not been finalized, leaving the proposed majority-bank structure subject to legislative review.

Fintech representatives are pressing for broader access. At a National Assembly forum on November 12, VIDEX CEO Ryu Hong-ryeol argued that licensing should be based on business capacity and risk management rather than limiting issuers to banks. He proposed assessing firms’ ability to manage reserves, control issuance and redemption, and undergo independent verification. Under his suggested division of work, banks could oversee reserves and liquidity while technology companies manage blockchain operations, private keys and payment services.

The rules could also affect the proposed combination of Dunamu, operator of Upbit, and Naver Financial. Under their agreement, Naver Financial would acquire Dunamu through a share exchange. The companies have not received final regulatory approval. South Korea’s Fair Trade Commission began formal deliberations on November 10, identifying 10 affected markets, including cryptocurrency exchanges, online payments and the future won stablecoin market. It is examining whether connecting issuance, trading and merchant payments could hinder competitors; the companies have submitted proposed corrective measures.

Banks and fintech firms are testing payment infrastructure as lawmakers consider safeguards for customer funds, settlement balances, transaction records and dispute resolution. In October, Gwangju Bank and Toss completed a QR payment trial linking banking apps with merchant terminals. In September, Kakao Pay and KakaoBank signed an agreement with Fireblocks to examine digital asset infrastructure and test distribution arrangements.