South Korea’s Central Bank Doubles Down: Launches Dedicated Cryptoassets Division

Seoul shakes up the financial scene—traditional banking meets the blockchain era head-on.

Breaking the mold: The Bank of Korea isn't just watching from the sidelines anymore. Its new crypto division signals a tectonic shift in how regulators approach digital assets.

Behind the move: A not-so-subtle admission that ignoring crypto's $2T+ market cap is no longer an option—even for conservative central banks. (Take notes, Fed.)

The fine print: No concrete regulations announced yet—just another government agency 'exploring possibilities' while traders actually make profits.

Last word: When central banks start playing catch-up with crypto, you know the revolution's already won. Now if only they could move at blockchain speed.

Central Bank Digital Asset Strategy Evolution

BOK Governor Rhee Chang-yong previously stated that “deposit tokens are essentially stablecoins issued by banks,” signaling the central bank’s growing interest in private sector digital currency collaboration. The institutional restructuring reflects BOK’s strategic pivot toward active digital asset market participation rather than passive observation.

The Cryptoassets Department will coordinate with South Korea’s Financial Services Commission on stablecoin regulation as Korean won-pegged digital currencies gain traction among major technology companies and financial institutions.

Political and Regulatory Context

The department launch coincides with South Korea’s National Assembly considering new stablecoin regulatory frameworks. Both major political parties proposed new stablecoin regulation bills, giving the Financial Services Committee more oversight. Critics say this could reduce the BOK’s influence on monetary policy.

In the meantime, the largest Korean tech firms have already registered trademarks of KRW-backed stablecoins, expecting future legislation.

The central bank of South Korea is rebranding itself to remain relevant in an ever-changing environment of digital currencies, where it is juggling between stablecoin regulation and its long-term plans of issuing a CBDC.

Also Read: XRP Dominates Trading Volume on South Korea’s Upbit