Korean Regulators Move Toward Allowing Non-Bank Stablecoin Issuers

South Korea’s Financial Services Commission (FSC) is accelerating legislation for KRW-based stablecoins, signaling a potential shift from a bank-only issuance model to a more inclusive framework allowing qualified non-bank entities, including fintech and big tech firms, to issue stablecoins. FSC Vice Chairman Lee Eog-weon emphasized that stablecoins could serve as “a new driver of innovation and productivity” under the forthcoming Phase 2 Digital Asset Basic Act, expected to be introduced this month.

However, the Bank of Korea (BoK) remains cautious, citing concerns over depegging risks, digital bank runs, and the erosion of monetary policy control. The BoK argues that without sufficient reserve assets and clear investor protections, public trust in the KRW could be undermined. Industry participants, meanwhile, stress that South Korea must align with global precedents—such as the U.S. and EU—where stablecoins issued by non-banks operate safely under robust reserve and redemption frameworks.

Despite differing stances, both regulators are reportedly engaged in close consultations to reconcile their views. Analysts believe a compromise is imminent, granting both banks and qualified non-banks issuance rights under strict supervision—a model balancing financial stability and innovation in Korea’s evolving digital asset landscape.

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