South Korea’s central bank, the Bank of Korea (BOK), is stepping up its involvement in the crypto sector by launching a new “Cryptoassets Department.” The move reflects rising momentum in the country’s public sector toward regulating stablecoins and digital currencies more seriously.
Effective July 31, the existing Digital Currency Research Lab will be renamed to Digital Currency Lab. The change emphasizes that it’s becoming a fully-fledged operational unit rather than just a research division. Additionally, internal teams are being realigned to better support testing of token behaviour and usability.
The newly formed division will operate under the Financial Settlement Bureau and will be in charge of tracking crypto market developments, including Korean won-pegged stablecoins. This comes as the central bank adjusts its internal structure, renaming its existing “Digital Currency Research Lab” to simply “Digital Currency Lab,” further streamlining its digital currency operations.
Experts believe this reorganization is aimed at keeping pace with fast-moving developments in the stablecoin space while also managing the country’s central bank digital currency (CBDC) strategy more efficiently. Staff will also be assigned to test token usability in different environments.
The BOK recently paused its CBDC rollout amid growing political support for private sector stablecoins. The central bank has argued that deposit tokens issued by banks are essentially the same as stablecoins pegged to the Korean won, indicating that it might favor a bank-led digital currency ecosystem over a central issuance model.
The timing of the BOK’s move is notable, coming just after South Korea’s two largest political parties introduced new stablecoin regulation bills. These bills aim to place the Financial Services Committee in charge of stablecoin oversight. Critics say this could reduce the BOK’s influence over monetary policy, a concern the central bank has voiced repeatedly.
Meanwhile, big South Korean tech players are preparing for the stablecoin wave by filing trademarks related to KRW-backed tokens, anticipating favorable legislation ahead.
South Korea is preparing for a more structured crypto future, even as internal debates continue over who should lead the charge.
The BOK is enhancing crypto regulation efforts, focusing on stablecoins and CBDCs, to align with South Korea’s growing digital asset market.
The upgraded lab will test token usability and monitor crypto markets, shifting from research to active operational oversight.
New stablecoin regulation bills from South Korea’s major political parties aim to place stablecoin oversight under the Financial Services Committee, which the BOK fears could reduce its influence over monetary policy.
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