I believe this is a positive development!

South Korea has taken a key step in digital asset regulation. Rhee Chang-yong, Governor of the Bank of Korea, confirmed at the Asian Financial Forum in Hong Kong that authorities have allowed Korean residents to invest in overseas-issued cryptocurrencies. This is seen as an important turning point in South Korea's crypto policy, shifting from a highly closed approach to a cautiously open one. This change is not simply about easing restrictions. Regulators are studying a new registration system that may, in the future, allow local Korean financial institutions to issue virtual assets within a compliant framework. The plan will introduce licensing and ongoing supervision, aiming to steer market demand onto a controllable track rather than letting it flow into gray or offshore areas. Rhee Chang-yong stated that this move is a balanced choice driven by strong market demand—allowing investors to access global digital assets while maintaining local issuance rights under regulatory oversight to prevent disorderly expansion from impacting the financial system. Regarding digital currency structure, the Bank of Korea has also provided a clear stance. Stablecoins denominated in Korean won are viewed as more suitable for cross-border settlement, helping businesses reduce international transfer costs and increase speed; meanwhile, in domestic retail payment scenarios, tokenized bank deposits are more likely to become mainstream tools. Since South Korea’s existing payment system is already highly mature, the advantages of retail central bank digital currencies (CBDCs) in daily consumption are not obvious, so the central bank prefers to promote pilot projects for wholesale CBDCs and tokenized deposits. However, stablecoins remain the most cautious variable for regulators. Rhee Chang-yong warned that if the Korean won stablecoin becomes linked with the US dollar stablecoin, capital could quickly shift to dollar assets during exchange rate fluctuations or market panic, potentially triggering capital outflows. He also expressed concerns about non-bank institutions issuing stablecoins, believing this could amplify systemic risks and weaken regulatory effectiveness. South Korea’s current strategy is to gradually open up overseas crypto investments while tightly controlling local issuance and the development of stablecoins. This approach aims to remain competitive in the digital financial wave while safeguarding the bottom line of currency and capital flows.