The Bank of Korea has established a market surveillance department for crypto.

The Bank of Korea (BOK) has just established a new digital asset department to oversee the crypto market and lead internal discussions on stablecoins pegged to the won (KRW), according to News1.

This new department belongs to the Financial Payment System Bureau and will play a central role in activities related to stablecoins in South Korea. At the same time, the BOK also renamed the Digital Currency Research Group to the Digital Currency Group, indicating a shift from research to practical implementation.

This move comes amid President Lee Jae Myung's commitment to promoting the domestic stablecoin market to limit the outflow of capital. A framework bill for KRW stablecoins has also been submitted to the National Assembly.

The private sector quickly got involved, with a number of banks and major payment companies in South Korea filing trademark applications for stablecoin.

Previously, the BOK had temporarily postponed the CBDC project due to the significant progress of stablecoins. Governor Lee Chang-yong has affirmed that there is a real demand for KRW stablecoin, but also warned of the risks if non-bank organizations are allowed to issue such assets.