BOK outlines monetary risks, vows to shape second wave of crypto legislation
The Bank of Korea (BOK) has pledged to actively participate in the country’s ongoing legislative efforts to regulate stablecoins, calling them a potential threat to monetary policy and financial stability, according to a report published Monday.
Unlike general crypto assets, stablecoins are viewed as payment instruments capable of undermining the BOK’s influence over money supply if widely adopted. The central bank warned that their unchecked use could “transmit systemic risks” to traditional financial systems.
Part two of South Korea’s crypto legislation is coming
South Korea implemented its first major crypto law in July 2024, focusing on investor protection and exchange accountability. The second phase, now in development, will address stablecoin frameworks, token transparency, and crypto service classifications, the BOK said.
The Financial Services Commission plans to begin drafting the legislation in the second half of 2025, while the central bank continues testing its own central bank digital currency (CBDC), which will soon enter a second-stage trial involving peer-to-peer transfers.
With over 18 million crypto investors and $12 billion in daily trading volume across major exchanges, South Korea remains one of the most active crypto markets globally — and now one of the most determined to regulate it comprehensively.
