Bank of Korea Establishes Cryptoassets Department Amid Growing Stablecoin Interest

The Bank of Korea (BOK) has established a new "Cryptoassets Department" to oversee the nation's evolving virtual asset landscape, signaling a strategic shift from research to active implementation in its digital currency strategy. This department, operational since July 31, 2025, replaces the existing Digital Currency Research Lab, reflecting a broader focus beyond experimentation. The BOK's decision to pause its central bank digital currency (CBDC) rollout further highlights its strategic recalibration, as it pivots towards developing stablecoins as functional equivalents to deposit tokens issued by commercial banks. This move underscores the central bank's commitment to fostering a resilient and forward-thinking financial ecosystem. The reorganization aligns with shifting regulatory priorities and growing political support for private sector innovation, as recent legislative proposals aim to transfer stablecoin oversight from the BOK to the Financial Services Committee. In response, the new department will focus on maintaining supervisory authority as the regulatory framework evolves, including tracking developments in bank-issued tokens and corporate stablecoins. This strategic shift reflects South Korea's evolving approach to digital finance, balancing regulatory scrutiny with support for private sector experimentation, and positions the BOK to play a critical role in shaping regulatory frameworks and technical standards for stablecoin adoption while adapting to the rapid evolution of the crypto ecosystem.