During Hong Kong’s Asia Financial Forum today, Bank of Korea Governor Rhee Chang Yong discussed the potential issuance of stablecoins in Korea. The Governor explained that his reasons for requiring bank involvement are based on several factors. He believes the most likely use case for Korean won stablecoins is for cross border usage, but Korea still has capital flow management measures.
Governor Rhee’s comments painted a view that a large proportion of stablecoin usage in Asia aims to hide identities. Hence, he is concerned that without bank involvement, KYC and AML requirements will not be applied appropriately. “So we want to have a more conservative approach,” said Governor Rhee. “We want to allow the Korean won stablecoin issuance, but let’s start with the bank led institutions.”
The governor suggested starting with bank-led institutions, even as the market calls for non-bank access. He stated that he would support won stablecoin issuance but prefers a cautious, institution-led path to ensure proper oversight and identity verification. He acknowledged that market pressure for non-bank access exists, yet emphasized the importance of a regulated, bank-led framework in the initial phase. The remarks reflect the broader regulatory balancing act in Asia’s crypto space, where authorities seek to enable digital payments while safeguarding financial integrity and compliance.
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