South Korea’s bank-first stablecoin approach lacks logic, says Kaia chair

The Bank of Korea should make clear rules for stablecoin issuers, allowing banks and non-banks to issue the tokens, says Kaia DLT Foundation chair Dr. Sangmin Seo.

The Bank of Korea’s push for the banking sector to lead the rollout of won-denominated stablecoins lacks logic, says Dr. Sangmin Seo, the chair of the Kaia DLT Foundation.

In a report released on Monday, the central bank argued that banks are already subject to strict regulations, including capital, foreign exchange, and Anti-Money Laundering requirements, which could help minimize any risks associated with introducing stablecoins to the country.

At the same time, the BOK wants a policy consultative body jointly made up of currency, foreign exchange, and financial authorities to decide on issuer eligibility, volumes and other key considerations.

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