Democratic Party "Bank of Korea-centered supervision of KRW stablecoins is inappropriate… Should be left to the private sector"

Chang Yong Rhee, Governor of the Bank of Korea, has emphasized the need for governmental management and supervision of KRW stablecoins. Meanwhile, the Digital Asset Committee of the Democratic Party of Korea expressed concerns about a central-bank-led supervisory approach.

On the 2nd (local time), the Digital Asset Committee stated in a press release, "A central bank-centered licensing and supervisory system does not align with global regulations and trends," adding, "Since the Bank of Korea is not a regulatory agency, its primary role should be to prioritize monetary policy and financial stability."

The committee particularly emphasized that the establishment of regulatory authority over virtual assets must go through democratic procedures. The committee stated, "No single agency should unilaterally assert its jurisdiction," and that "a system should be established only after going through a democratic legislative process, reaching social consensus, and conducting professional reviews." While the framework in the 'Digital Asset Basic Act draft'—which is set to be proposed by Byung Deok Min, Chairman of the Digital Asset Committee—already grants licensing authority for stablecoins to the Financial Services Commission, the committee asserted that the Bank of Korea's push to secure supervisory powers is problematic.

They went on to point out that such jurisdictional disputes do not benefit national interests. The committee said, "This is a move that does nothing to promote the development of the virtual asset industry or the national interest," and "the Bank of Korea is not the proper entity to foster industries related to virtual assets." Furthermore, they added, "If disagreements among authorities cause delays in discussions on KRW stablecoins, there are serious concerns over capital outflows and financial sovereignty erosion due to the dominance of dollar-based stablecoins."

If Bank of Korea takes on the role of management and supervision, the committee predicted that it would negatively affect growth in related businesses. Restricting KRW stablecoin issuers to banks or a limited number of institutions may ultimately render the policy ineffective due to lack of global network interoperability and limited use cases.

The committee added, "KRW stablecoins are not just simple payment tools, but businesses capable of creating diverse synergies with Korea's platform industries," and "if entrusted to the private sector, this potential can be maximized."

Byung Deok Min, Chairman of the Digital Asset Committee, said, "The global trend in virtual asset regulation is to actively leverage private-sector innovation while ensuring stability," and "Korea should likewise enable each stakeholder to fulfill their respective roles and build a public-private cooperation model to foster the KRW stablecoin ecosystem."

Meanwhile, Chang Yong Rhee, Bank of Korea Governor, has consistently voiced concerns about KRW-based stablecoins. At the '2025 BOK International Conference' held earlier today, he also remarked, "We need to consider whether to permit KRW-based stablecoins for non-bank sectors," again emphasizing the importance of bank-centered management and supervision of KRW-based stablecoins.