Bank of Korea Establishes Digital Currency Lab to Strengthen Crypto Oversight

The Bank of Korea is escalating its engagement with digital assets by launching a dedicated 'digital currency lab' under its Financial Settlement Bureau. This unit will monitor cryptocurrency markets, with particular focus on won-pegged stablecoins and regulatory developments. The central bank simultaneously rebrands its research division to reflect a sharper operational mandate.

Market surveillance will track price volatility, liquidity patterns, and legislative changes. Parallel testing initiatives will evaluate token utility in payment systems and assess systemic risks to traditional banking channels. The MOVE signals a strategic pivot from theoretical research to active regulatory preparation.

This institutional shift coincides with legislative momentum for private stablecoins. Competing bills from major political factions propose granting the Financial Services Commission authority to license issuers—a development sparking debate about monetary policy sovereignty. Critics contend widespread stablecoin adoption could undermine central bank control over monetary aggregates and interest rate transmission.