South Korean payments giant BC Card has completed a significant pilot program enabling overseas visitors to pay local merchants using stablecoins, marking a strategic step toward integrating digital assets into mainstream commerce. The trial, which converted stablecoins into digital prepaid cards, positions the company—which handles over one-fifth of the nation’s card transactions—at the forefront of a potential payment infrastructure shift. This development unfolds as traditional financial players grow increasingly alert to stablecoins’ disruptive potential and South Korean regulators grapple with establishing a clear framework.
about BC Card Pilot Enables Stablecoin Payments for Overseas Visitors in South KoreaBank of Korea
0 in Finance and 0 in Crypto last weekSouth Korea Stablecoin Framework Stalled Over Bank Control
South Korea’s anticipated regulatory framework for locally issued stablecoins faces indefinite delays as a fundamental disagreement between the Bank of Korea and financial regulators over bank dominance in issuance creates an impasse. The central bank’s insistence that banking consortia maintain at least 51% ownership in any approved stablecoin issuer clashes with other regulators’ preference for broader industry participation, threatening to push the long-awaited framework beyond its expected 2025 timeline and leaving the country’s digital asset market in regulatory limbo.
about South Korea Stablecoin Framework Stalled Over Bank ControlBank of Korea Urged to Open Stablecoin Issuance to Non-Banks
The Kaia DLT Foundation is challenging the Bank of Korea’s proposal to restrict stablecoin issuance exclusively to banks. Foundation chair Dr. Sangmin Seo argues that both banks and non-banks should be permitted to issue won-denominated stablecoins, directly contradicting the central bank’s recent regulatory framework recommendations that favor traditional banking institutions for managing stablecoin risks.
about Bank of Korea Urged to Open Stablecoin Issuance to Non-BanksBank of Korea Warns on Won Stablecoin Risks
South Korea’s central bank has issued a stark warning about the risks of privately-issued won-denominated stablecoins, challenging the notion that blockchain technology alone can ensure currency stability. The Bank of Korea emphasized that currency reliability depends on institutional trust rather than technological innovation, citing historical currency failures and recent stablecoin depegging events as evidence of inherent vulnerabilities in private-sector issuance.
about Bank of Korea Warns on Won Stablecoin RisksSouth Korea Warns on Won Volatility in Rare FX Move
South Korean authorities have issued a rare verbal intervention warning about one-sided movements in the won, signaling growing concern over currency stability. The joint statement from the Finance Ministry and Bank of Korea comes amid heightened volatility driven by both domestic economic conditions and external global factors, potentially setting the stage for more direct market intervention if the situation persists.
about South Korea Warns on Won Volatility in Rare FX MoveSouth Korea Launches Digital Asset Task Force for Crypto Laws
South Korea’s ruling Democratic Party has launched an urgent legislative push to regulate digital assets, establishing a Digital Asset Task Force with a year-end deadline for comprehensive stablecoin and cryptocurrency laws. This decisive move comes as alarming data reveals $40.6 billion in digital assets flowed out of the country in the first quarter of 2025 alone, with half of that amount moving through dollar-pegged stablecoins like USDT and USDC. The initiative represents a strategic effort to protect Korea’s monetary sovereignty while positioning the nation as a leader in the rapidly evolving blockchain sector.
about South Korea Launches Digital Asset Task Force for Crypto LawsNaver Acquires Upbit Operator Dunamu in Crypto Push
South Korea’s internet behemoth Naver is making a decisive move into the digital asset space, acquiring Dunamu, the operator of the country’s largest cryptocurrency exchange Upbit, through a strategic share exchange. This acquisition, which will make Dunamu a wholly-owned subsidiary of Naver Financial, signals a significant escalation in Naver’s ambition to build a comprehensive ‘super app’ by integrating cryptocurrency trading into its vast ecosystem of search, e-commerce, and payment services. The deal also sets the stage for Naver Financial to launch a won-backed stablecoin, positioning it directly against initiatives from the traditional banking sector.
about Naver Acquires Upbit Operator Dunamu in Crypto PushSouth Korea Launches First Regulated Won Stablecoin KRW1
Digital asset custodian BDACS has launched South Korea’s first fully regulated won-backed stablecoin, KRW1, in partnership with Woori Bank, marking a significant milestone in the country’s digital asset evolution. The stablecoin is fully collateralized with Korean won held in escrow and operates on the Avalanche blockchain, launching amid ongoing legislative debates about stablecoin regulations that could shape the future of digital finance in the region.
about South Korea Launches First Regulated Won Stablecoin KRW1Won Rises as BOK Governor Defends Forex Intervention Strategy
The South Korean won appreciated by up to 0.6% against the US dollar, reaching 1,386.40, after Bank of Korea Governor Rhee Chang-yong publicly defended the central bank’s foreign exchange intervention strategy. Speaking at a press conference following the decision to maintain the current policy rate, Rhee stated that these interventions are intended to curb excessive currency depreciation. He also disclosed that the won’s performance is part of bilateral discussions with the United States government, highlighting the international dimensions of currency management policies.
about Won Rises as BOK Governor Defends Forex Intervention StrategySouth Korea Cracks Down on Crypto Lending Amid Leverage Risks
South Korea’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS) have intervened after Upbit and Bithumb launched crypto lending products with up to 4x leverage, enabling short-selling. Upbit suspended its Tether lending service due to potential violations of Korea’s Lending Business Act, while Bithumb retained its high-leverage structure. Experts warn that stricter rules may drive users to offshore platforms with weaker compliance, undermining local investor protections. The FSC and FSS plan a joint task force with exchanges to draft self-regulation policies. Meanwhile, South Korea’s central bank has rebranded its digital currency division, signaling tighter oversight of crypto markets amid broader regulatory shifts, including plans for spot crypto ETFs by 2025.
about South Korea Cracks Down on Crypto Lending Amid Leverage RisksSouth Korea Boosts CBDC and Crypto Oversight with New Teams
The Bank of Korea has rebranded its CBDC research teams to emphasize practical business applications and is launching a virtual asset committee to monitor the crypto market. The newly named Virtual Asset Team will handle stablecoin-related discussions, government collaboration, and legislative responses. This shift follows growing interest in won-pegged stablecoins and proposed stablecoin regulations, which prompted the central bank to strengthen its oversight framework. The changes highlight South Korea’s proactive approach to integrating digital assets into its financial system while ensuring regulatory compliance.
about South Korea Boosts CBDC and Crypto Oversight with New TeamsSouth Korea’s Dueling Stablecoin Bills Spark Crypto Debate
South Korea’s political parties are advancing competing stablecoin bills, with the Democratic Party proposing a ban on interest payments and stricter issuer requirements, while the ruling People Power Party’s bill omits such restrictions. Both proposals grant emergency powers to financial regulators and mandate full reserve backing for won-pegged stablecoins. The legislative battle unfolds as President Lee Jae-myung promotes a crypto-friendly agenda amid global efforts to regulate stablecoins. Industry experts caution against excessive restrictions, emphasizing the need for a balanced approach to maintain competitiveness. The Democratic Party’s bill requires FSC approval and $3.6 million minimum capital for issuers, while the PPP’s legislation focuses on licensing and disclosure requirements.
about South Korea's Dueling Stablecoin Bills Spark Crypto Debate