The Bank of Korea (BOK) said it will “actively participate” in building a regulatory framework for stablecoins to prevent monetary and financial risks. BOK warned that stablecoins act as payment instruments and could weaken monetary policy effectiveness and spread risks to traditional markets. South Korea is developing a second crypto law focusing on stablecoins, clear classifications for crypto service providers, and transparent token listing rules. Simultaneously, BOK is testing a central bank digital currency (CBDC) with local users and businesses to assess feasibility.