Seoul's roadmap pairs won-backed stablecoin legalization with foreign exchange liberalization, including offshore won settlement and higher reporting thresholds.
NEWS CORP currently carries an Alpha Score of n/a, giving AlphaScala's model a neutral read on the setup.
South Korea laid out a roadmap to legalize won-backed stablecoins and modernize its foreign exchange system, according to a July 19 report from local news outlet Etnews.
The plan was jointly announced by the Financial Services Commission, the Bank of Korea, the Financial Supervisory Service, and the Korea Securities Depository. It aims to remove time and location barriers to trading the won while improving cross-border capital flows, the report said.
As part of the proposal, the government will establish legal rules for issuing and circulating won-denominated stablecoins under the upcoming Digital Asset Basic Act. The legislation would provide the legal basis for bringing won-backed stablecoins into the domestic financial system and support cross-border movement of funds, the report said.
Once the law takes effect, won-backed stablecoins would become an officially recognized issuance category. The Digital Asset Basic Act is expected to introduce a unified legal framework covering cryptocurrencies and stablecoins.
Alongside the stablecoin framework, the Bank of Korea plans to expand pilot projects linking an institutional central bank digital currency with tokenized government bonds. The central bank will also participate in the Bank for International Settlements' Project Agora, which develops digital infrastructure for cross-border payments.
The roadmap builds on earlier positions from the Bank of Korea. Earlier this month, the central bank told lawmakers that bank-led consortiums should receive priority when issuing won-backed stablecoins. It argued that existing banking supervision offers stronger safeguards for financial stability and consumer protection. It also proposed creating a statutory policy body bringing together financial regulators and other government agencies to oversee the sector.
Separately, the Bank of Korea continues expanding its deposit token program. Deposit tokens are blockchain-based representations of commercial bank deposits issued on top of the central bank's wholesale CBDC infrastructure. The central bank has said future use cases will include government subsidies, public vouchers, electric vehicle charging payments, and other everyday payment services.
Beyond digital assets, the roadmap includes measures to modernize South Korea's foreign exchange system. Following the launch of 24-hour foreign exchange trading earlier this month, the government plans to establish an offshore won settlement network within the Bank of Korea.
According to Etnews, overseas financial institutions that register as offshore won settlement entities would allow foreign users to hold, transfer, and settle won through offshore accounts without opening bank accounts in South Korea.
The government also plans to more than double reporting thresholds for foreign currency lending and capital transactions. Over the long term, authorities intend to replace the current system centered on prior approvals with a post-reporting framework. That would reduce administrative requirements for cross-border won transactions while aligning the financial system with the international use of digital assets, including won-backed stablecoins.
The timeline for the Digital Asset Basic Act remains unclear. The government has not set a date for passage.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.