Key Insights

• The Bank of Korea has created a new virtual asset committee to monitor crypto and stablecoin activity.
• Its CBDC research teams have been renamed and restructured for business operations.
• South Korean banks plan to launch won-pegged stablecoins by Q4 or early next year.
  

The Bank of Korea is stepping up its regulation of digital assets by launching a “virtual asset committee”. This move shows that interest in crypto across South Korea is on the rise. Besides, this is especially as the country inches closer to legalizing stablecoins and expanding its crypto efforts.

The main goal of this committee is to monitor the crypto market, support ongoing legislative efforts, and keep tabs on won-pegged stablecoins. This is important as banks prepare to issue their own stablecoins and lawmakers push forward with regulation.

Virtual Asset Committee to Handle Crypto and Stablecoins Oversight

The virtual asset committee is being established under the Bank of Korea’s Financial Settlement Bureau. It will monitor developments in the crypto sector, especially those tied to Korean won-pegged stablecoins and upcoming legislative changes.

South Korea’s central bank forms a Virtual Asset Committee to monitor crypto markets & stablecoin legislation.

Its CBDC research team is now a practical “Digital Currency Team,” focusing on execution, not theory.

Big shift toward digital finance in East Asia #Crypto #CBDC pic.twitter.com/EJmqJc08qj

— Hippo Wallet | HPO (@HippoWallet) July 30, 2025

A BOK official told Yonhap News that the team will also be responsible for cooperating with government agencies throughout the legal process. The focus on collaboration shows  the need for unity as South Korea moves toward formalizing its crypto laws.

CBDC Teams Get a Business-Focused Makeover

In line with this shift, the Bank of Korea has also renamed and restructured its CBDC teams. Previously, the teams operated under the title of “Digital Currency Research.” Now, they’ve been renamed to reflect more practical business operations, rather than just theoretical work.

As a breakdown, the main team is expected to act as the main unit handling CBDC projects. In addition, the technology team will conduct research and analysis related to crypto and stablecoins.

Finally, the Infrastructure Team will work on a digital voucher management platform, which will support testing based on deposit tokens.
Overall, these changes show the central bank’s change from crypto being related mostly to academic research, to being used in real-world applications. 

According to BOK officials, this is part of the country’s active deployment plan, if a CBDC becomes necessary.

CBDC Testing Postponed But Not Abandoned

Amid the stablecoins push, South Korea had already been conducting retail CBDC trials since April of the previous year. But the program was paused in June. The decision came after complaints from local banks about the high costs of participation and the government’s support for private sector stablecoins.

Even though the latest round of CBDC testing ended early, the central bank has made it clear that its digital currency plans are not off the table. A BOK spokesperson noted that the team will resume discussions once the legal uncertainties are resolved.

Bank of Korea Governor Rhee Chang-yong echoed this sentiment, stating, “Whether we choose stablecoins or deposit tokens, South Korea will need digital currency in the future.”

South Korean Banks Favor Stablecoins Over CBDC

While the central bank is still considering CBDCs, eight major South Korean banks are moving forward with plans to issue stablecoins backed by the Korean won. These coins are expected to launch between lQ4 and early next year.

Banks continue to argue that stablecoins are more flexible and less costly than CBDCs. The BOK has also acknowledged these arguments and may gradually shift responsibility to banks for issuing such digital assets. Still, the central bank is expected to maintain a supervisory role to make sure that monetary policy remains effective.