The Bank of Korea (BOK) has proposed that stablecoin issuance in South Korea should initially be restricted to banks to minimize associated risks as the nation progresses with its crypto policies. Deputy Governor Ryoo Sang-dai expressed this viewpoint during a meeting with major commercial banks, emphasizing that banks, which are heavily regulated, should be the first to issue stablecoins. This move aims to create a safety net amidst rising concerns regarding capital outflows, particularly as stablecoin transfers abroad surged to $19.5 billion in Q1 2025. The proposal is part of a broader push under President Lee Jae-myung's administration, which has also seen the introduction of a Digital Asset Basic Act, enabling local firms to issue won-backed stablecoins. While BOK officials acknowledge the potential benefits of stablecoins, they caution against possible disruptions to foreign exchange management and financial stability, advocating for a careful and incremental regulatory approach.

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