South Korea Tightens Control Over Stablecoins: Why is the BOK Involved?

The digital asset landscape continues to evolve, bringing both opportunities and challenges for traditional finance. As cryptocurrencies like stablecoins gain prominence, their potential impact on financial systems is under scrutiny. South Korea’s Bank of Korea (BOK) has taken a decisive stance, asserting its role in the approval process for any won-backed stablecoin seeking to launch within the country. This move stems from concerns about stablecoin’s influence over key policy areas like monetary policy and financial stability.