South Korea’s central bank, the Bank of Korea (BOK), has launched a new Virtual Asset Committee. This unit will monitor cryptocurrency markets, work with lawmakers, and respond to regulatory changes. The move reflects the central bank’s increasing role in overseeing the development of digital assets.

Bank of Korea Creates Virtual Asset Committee to Oversee Crypto Sector

According to a July 30 report from Yonhap News, the BOK established the Virtual Asset Committee to supervise crypto activities. The unit will manage discussions around stablecoins and virtual assets. It will also coordinate with the government as crypto-related laws continue to develop.

The bank’s move comes as Korean lawmakers push for new legislation on stablecoins. Major financial institutions in South Korea are also working on stablecoins pegged to the Korean won. The committee will help guide policy as crypto adoption continues to rise in the country.

BOK officials confirmed the team’s core role will be in digital asset risk management and inter-agency cooperation. It will also track market activity and lead dialogue with the private sector to align industry growth with regulatory standards.

Digital Currency Teams Restructured to Expand CBDC Research

Alongside launching the Virtual Asset Committee, the Bank of Korea has restructured its digital currency teams. The former Digital Currency Research Team is now called the Digital Currency Team. This reflects a more practical focus on real-world CBDC projects rather than just academic study.

The BOK official told Yonhap that the new name signals a shift toward hands-on CBDC development. The central bank has also created two other teams. One will handle digital currency technology research, and another will focus on CBDC infrastructure and testing platforms.

These structural updates follow a temporary pause in the BOK’s retail CBDC pilot, which was scheduled to end in June 2024. The test was postponed due to legal concerns and financial institutions’ requesting time to assess the costs involved.

The BOK said discussions on the CBDC test could resume once legal clarity improves. It also reaffirmed its commitment to researching digital money systems in response to changes in financial technology.

Korean Banks Prioritize Stablecoin Development Over CBDCs

Eight of the largest banks in South Korea are readying to issue a stablecoin with a peg against the won. It will be released at the end of 2025 or the beginning of 2026. These initiatives are in line with the general agenda of coming up with secure and controlled digital payment instruments in the nation.

BOK Deputy Governor Ryoo Sang-dai has added that banks are the proper arena to issue stablecoins and then to branch into other sectors. It indicates that the central bank would work with regulated financial institutions when it comes to digital finance development.

In the meantime, the BOK Governor Lee Chang-yong once again reiterated that in the future South Korea will need digital currency, whatever its form. It affirms that the bank would want to continue playing a pivotal role in making crypto and CBDC policies in the country.

The newly implemented committee and new structure of the central bank are expected to support the increased regulatory work by the central bank as the digital asset economy of South Korea continues to expand.