South Korea moves to legalize won stablecoins under new Digital Asset Basic Act

South Korea’s Financial Services Commission, Bank of Korea, Financial Supervisory Service, and Korea Securities Depository jointly unveiled a roadmap to legally recognize won-backed stablecoins under a forthcoming Digital Asset Basic Act, while also easing foreign exchange rules to make the won more freely convertible.

Won stablecoins are expected to become a cornerstone of South Korea’s financial ecosystem under the proposed Digital Asset Basic Act, which aims to establish a unified legal framework governing cryptocurrencies and stablecoins.

The move reflects the government’s determination to strengthen the country’s competitiveness in global digital finance while improving cross-border capital flows.

Won Stablecoins receive historic legal framework

The roadmap, jointly announced by the Financial Services Commission (FSC), the Bank of Korea (BOK), the Financial Supervisory Service (FSS), and the Korea Securities Depository, outlines a coordinated strategy to eliminate time and location barriers for trading the Korean won.

A central pillar of the proposal is the introduction of legislation that formally recognizes won stablecoins as an approved issuance category under the forthcoming Digital Asset Basic Act.

Once enacted, the law will provide legal certainty for issuing, circulating, and supervising won stablecoins within South Korea’s financial system while supporting seamless international fund transfers.

Industry observers believe the framework could encourage greater institutional participation in digital assets by providing clear regulatory guidelines and stronger consumer protections.

Bank of Korea expands CBDC and Won Stablecoins strategy

The roadmap extends beyond won stablecoins by reinforcing South Korea’s broader digital currency ambitions.

The Bank of Korea plans to expand pilot projects connecting its wholesale central bank digital currency (CBDC) with tokenized government bonds, creating new efficiencies in financial settlements.

The central bank will also deepen its involvement in the Bank for International Settlements’ Project Agora, an international initiative developing advanced infrastructure for cross-border payments.

Earlier this month, the Bank of Korea urged lawmakers to prioritize bank-led consortiums in issuing won stablecoins, arguing that established banking institutions already operate under strict regulatory oversight.

“The introduction of stablecoins should proceed in a way that preserves financial stability and consumer protection,” the Bank of Korea told lawmakers during recent policy discussions, emphasizing the importance of leveraging existing banking supervision.

The central bank has also proposed creating a statutory policy body that would bring together financial regulators and government agencies to oversee won stablecoins and other digital assets under one coordinated framework.

Deposit tokens complement Won Stablecoins

While won stablecoins continue to dominate regulatory discussions, the Bank of Korea is simultaneously expanding its blockchain-based deposit token program.

Unlike stablecoins, deposit tokens represent commercial bank deposits operating on top of the central bank’s wholesale CBDC infrastructure.

According to the BOK, future applications will include government welfare payments, public vouchers, electric vehicle charging, and other everyday digital payment services.

Bank for International Settlements General Manager Agustín Carstens has repeatedly stressed the importance of developing trusted digital payment systems, stating that central bank-backed innovations can improve efficiency while preserving confidence in monetary systems.

South Korea’s dual-track approach demonstrates that authorities view both won stablecoins and deposit tokens as complementary technologies rather than competing products.

Foreign Exchange reforms support Won stablecoins growth 

The government’s strategy also introduces sweeping foreign exchange reforms designed to enhance the international usability of the Korean won.

Following the recent launch of 24-hour foreign exchange trading, authorities intend to establish an offshore won settlement network within the Bank of Korea.

Under the proposal, registered overseas financial institutions will be permitted to hold, transfer, and settle Korean won through offshore accounts without requiring foreign users to open domestic bank accounts.

The government also plans to significantly increase reporting thresholds for foreign currency lending and capital transactions while gradually replacing approval-based procedures with a post-reporting framework.

Officials believe these measures will reduce administrative burdens, improve capital mobility, and strengthen the global competitiveness of won stablecoins by making cross-border transactions faster and more efficient.

Won Stablecoins position South Korea for global competition

South Korea’s roadmap arrives as governments worldwide race to establish regulatory frameworks for stablecoins amid growing institutional adoption.

The upcoming Digital Asset Basic Act is expected to provide one of Asia’s most comprehensive legal structures covering cryptocurrencies and won stablecoins, potentially positioning South Korea as a regional leader in regulated digital finance.

If successfully implemented, the reforms could reshape how individuals, businesses, and financial institutions move value across borders while reinforcing confidence in blockchain-based payment systems.

With legal certainty, institutional oversight, CBDC integration, and modernized foreign exchange rules moving forward simultaneously, won stablecoins are rapidly emerging as a central pillar of South Korea’s digital economy strategy—one that could influence stablecoin regulation well beyond its borders.