The “Cryptoassets Department” will focus on monitoring crypto markets, stablecoins, and related legislation. At the same time, the BOK’s “Digital Currency Research Lab” will be renamed the “Digital Currency Lab” on July 31 and will begin usability testing of tokenized assets.
According to a local media report, the new department will operate under the BOK’s Financial Settlement Bureau in Seoul. This step aims to enhance the surveillance of the bank over crypto markets and be ready to regulate and innovate in the area of digital finance. It is also indicative of the increased interest in Korean won-pegged stablecoins and the changing CBDC approaches.
BOK Governor Rhee Chang-yong previously stated that “deposit tokens are essentially stablecoins issued by banks,” signaling the central bank’s growing interest in private sector digital currency collaboration. The institutional restructuring reflects BOK’s strategic pivot toward active digital asset market participation rather than passive observation.
The Cryptoassets Department will coordinate with South Korea’s Financial Services Commission on stablecoin regulation as Korean won-pegged digital currencies gain traction among major technology companies and financial institutions.
The department launch coincides with South Korea’s National Assembly considering new stablecoin regulatory frameworks. Both major political parties proposed new stablecoin regulation bills, giving the Financial Services Committee more oversight. Critics say this could reduce the BOK’s influence on monetary policy.
In the meantime, the largest Korean tech firms have already registered trademarks of KRW-backed stablecoins, expecting future legislation.
The central bank of South Korea is rebranding itself to remain relevant in an ever-changing environment of digital currencies, where it is juggling between stablecoin regulation and its long-term plans of issuing a CBDC.