South Korea’s central bank, the Bank of Korea (BOK), is creating a dedicated digital asset division to closely monitor the cryptocurrency landscape and contribute to policy discussions,
according to a report from Yonhap News on July 29.
This specialized team will also collaborate with government officials as new legislation regarding stablecoins and other types of digital assets is considered.
The formation of this dedicated team arises at a time when several South Korean financial institutions are investigating digital tokens linked to the national currency, the won. Concurrently, lawmakers are actively advancing new regulatory frameworks for stablecoins.
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The BOK has also reorganized several internal teams. The former Digital Currency Research Team has been redesignated as the Digital Currency Team. A spokesperson from the central bank clarified that this new designation reflects a shift in focus towards the practical application of digital currency initiatives, moving beyond purely research-oriented activities.
Additionally, two more teams have been renamed to better reflect their roles. One will operate as the Digital Currency Technology Team, spearheading innovation and exploration in this technological space. The other, now known as the Digital Currency Infrastructure Team, will be responsible for establishing a digital voucher platform utilizing deposit tokens and constructing an experimental framework for future endeavors.
Digital assets are gaining widespread acceptance in South Korea, becoming a prominent discussion point in the recent presidential race. Lee Jae Myung, a proponent of increased crypto accessibility, secured the election on June 3. His policy suggestions included providing legislative support for stablecoins and crypto-based exchange-traded funds (ETFs).
Furthermore, South Korea’s leading political parties recently presented distinct strategies for regulating stablecoins pegged to the won. Curious about the specifics of each plan?
Explore the complete report here.
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