South Korea’s Stablecoin Framework Stalls Amid Bank Dominance Debate

South Korea’s efforts to establish a comprehensive regulatory framework for stablecoins have hit an unexpected snag. What’s causing the holdup? A significant disagreement between financial regulators and the Bank of Korea over the extent of traditional banks’ involvement. The central point of contention is whether banks should hold a dominant role in issuing won-backed stablecoins. This internal power struggle is now delaying the long-awaited framework, which was initially expected to be finalized this year. Until regulators and the central bank can align on this crucial issue of banking dominance, the path to clearer stablecoin rules in South Korea remains uncertain.