FSS prepares supervisory framework for potential bank-issued stablecoins… reviewing adoption of Basel crypto-asset rules

South Korea’s Financial Supervisory Service (FSS) has begun drawing up supervisory standards for virtual assets (cryptocurrencies) in preparation for the possibility that banks may be allowed to issue stablecoins. The plan is to introduce prudential regulations aligned with global standards and to overhaul banks’ frameworks for managing exposures to crypto-asset risks.

According to industry sources on the 9th, the FSS said at the “2026 Banking Sector Financial Supervision Briefing,” held that day at its headquarters in Yeouido, Seoul, that it is preparing supervisory measures for banks’ issuance and use of virtual assets.

At the core is a review of adopting the Basel Committee on Banking Supervision (BCBS)-proposed “prudential regulation for crypto-asset exposures (risk exposure amounts).” This is an international standard designed to have the risks of virtual assets held or handled by banks managed within the capital regulatory framework. The move is seen as a pre-emptive step in light of the possibility that stablecoin issuance could expand into the regulated financial sector.

Meanwhile, the FSS also noted that the financial market environment has been changing rapidly in recent months. With geopolitical risks rising and the movement of funds across financial sectors accelerating, banks’ operating environments are also shifting quickly, it said. The regulator said it will build a supervisory system that ensures consumer protection and financial stability at the same time.