South Korea Central Bank Warns of FX Risks Amid Stalemate Over Stablecoin Rules
South Korea’s stablecoin debate remains gridlocked as the Bank of Korea publicly cautions that dollar-pegged tokens could amplify foreign exchange pressures, prompt capital flight, and expose gaps in issuer supervision. The central bank emphasized that insufficient oversight of stablecoin issuers could weaken monetary control and increase systemic vulnerability, urging faster clarity from regulators even as lawmakers and industry stakeholders disagree on the scope of rules. The warning matters because policy inaction could force tougher restrictions later, disrupt exchange operations, and raise compliance costs for fintech and crypto firms operating in Korea. Market participants and international partners will watch whether Seoul moves toward stricter issuer standards, tighter FX safeguards, or a compromise framework — decisions that will shape local adoption and cross-border capital flows.