South Korea Paves Cautious Path for Won-Based Stablecoin

Major South Korean banks are developing a phased introduction of a won-based stablecoin, aiming to enhance financial stability through regulatory control. This initiative prioritizes KYC compliance for large banks and will introduce the stablecoin in stages. Governor Lee Chang-yong emphasized the cautious approach during his address to South Korea’s National Assembly on October 19. This move could reshape South Korea’s financial sector by reducing reliance on USD-pegged stablecoins, sparking interest among major banks and boosting regulatory oversight. This move is gaining attention from stakeholders across the industry.