South Korea Pushes Stablecoin Laws as AI Tokens Show No Lift

TLDR

• The Bank of Korea has supported the development of won-backed stablecoins under strict regulatory oversight.
• Governor Rhee Chang-yong recommended that banks should lead the initial issuance of stablecoins.
• He warned that non-bank stablecoin issuers could enable money laundering and avoid capital regulations.
• The ruling Democratic Party is preparing legislation to regulate stablecoins and cryptocurrency ETFs.
• OpenAI announced GPT-6 with persistent memory but AI-related crypto tokens showed no significant market reaction.

South Korea’s central bank expressed support for stablecoin development under strict regulation. Meanwhile, the ruling party fast-tracks digital asset laws. Elsewhere in APAC, crypto and blockchain developments continue despite volatility and political shifts.

Bank of South Korea Endorses Stablecoins Under Oversight

South Korea’s central bank has endorsed won-based stablecoins with conditions. Governor Rhee Chang-yong urged bank-led issuance to reduce risks. He presented these views before parliament’s finance committee on Tuesday.

He clarified the Bank of Korea does not reject digital innovation outright. “Programmable money enables conditional payments and is part of digital currency evolution,” he said. However, he warned against misuse by non-bank entities.

Rhee added that stablecoin issuance must align with financial regulations. He stated that unchecked issuance could bypass capital controls. Additionally, he expressed concern over potential money laundering.

The Democratic Party is pushing parallel legislation. It plans to form a special committee for stablecoin and ETF regulation. Officials referenced campaign promises made by President Lee Jae-myung.

South Korea’s policymakers see urgency in coordinated efforts. The finance ministry and National Assembly aim to synchronize actions. This alignment marks a shift from previous fragmented approaches.

The digital asset sector in South Korea remains under scrutiny. Regulators seek a balance between innovation and oversight. The central bank maintains a cautious but open stance.

GPT-6 Fails to Move AI Tokens

OpenAI’s announcement of GPT-6 with persistent memory gained attention. CEO Sam Altman confirmed faster release timelines. Yet, AI-focused crypto tokens saw no market reaction.

Worldcoin, associated with Altman, remained unchanged after the reveal. This indicates weak sentiment in the crypto-AI space. It diverges from the excitement seen in past cycles.

Investors expected AI-linked tokens to surge. Instead, markets ignored the update despite its technical relevance. The outcome highlights a disconnect between AI progress and crypto enthusiasm.

South Korea’s crypto community monitored the development. However, local exchanges reported no significant volume spikes. This further confirms the gap in market response.

Regional Crypto Momentum Continues

China is trialing yuan-based stablecoins in Hong Kong and Shanghai. This move targets US dollar influence in regional trade. The trials mark China’s broader financial strategy.

SBI Holdings and a Singapore startup will launch a tokenized stock platform. The rollout is expected between 2026 and 2027. The platform aims to serve cross-border investors.

Toyota’s Blockchain Lab introduced the MON framework. It uses Avalanche to convert vehicles into tradable NFTs. This project reflects innovation within the automotive industry.

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