OpenAI introduces ChatGPT Health, a specialized AI experience designed to integrate securely with personal health data, enhancing user engagement and decision-making in health-related matters.
OpenAI has announced the launch of ChatGPT Health, a new specialized version of its AI chatbot designed to assist users with health and wellness inquiries. This development marks a significant step in integrating artificial intelligence with personal health management, according to OpenAI.
Integration with Health Data
ChatGPT Health is designed to securely connect with users’ electronic health records and health applications like Apple Health, Function, and MyFitnessPal. This integration allows the AI to provide more personalized and contextually relevant responses based on the user’s health data. The platform is structured to enhance user understanding and engagement with their health information, offering insights into test results, dietary advice, and exercise planning.
Privacy and Security Focus
Privacy and security are central to ChatGPT Health’s design. The service operates within a dedicated space, ensuring that health-related conversations and data remain isolated from other interactions. OpenAI has implemented advanced encryption and partitioning technologies to safeguard user data. Conversations within ChatGPT Health are not used for training its foundational AI models, ensuring that user privacy is maintained.
Collaborative Development with Medical Experts
OpenAI developed ChatGPT Health in collaboration with over 260 practicing physicians from various specialties worldwide. This partnership has helped refine the AI’s ability to deliver clear and practical health information. The model’s responses have been evaluated using HealthBench, an assessment framework developed with medical professionals to ensure clinical relevance and safety.
Initial Rollout and Future Plans
Initially, ChatGPT Health will be available to a limited group of users as OpenAI seeks to optimize the experience based on user feedback. The company plans to gradually expand access to more users over the coming weeks. Interested users can join a waitlist to gain early access to the platform. Currently, the integration with electronic health records and some applications is limited to the United States, with Apple Health requiring iOS for synchronization.
With this launch, OpenAI aims to provide users with a more informed and confident approach to managing their health, leveraging AI to support rather than replace traditional healthcare services.
Bitcoin traders’ risk sentiment turned bullish, with the proof being in this week’s futures-led advance to $95,000. Will bulls make another attempt after retesting a key underlying support level?
The start of 2026 saw Bitcoin and select altcoins rally back toward their weekly range highs, and the current situation across markets highlights improving investor sentiment and trading volumes. Since Jan. 1, Bitcoin continued to show improvement with tightening range consolidation clearly seen in its daily higher lows and higher highs, leading to the weekly high at $94,800.
7-day liquidation heatmap data from Hyblock shows long liquidation clusters between $89,000 to $87,000 and short positions sitting at the weekly range high near $95,000.
From a technical trader’s point of view, the start of year rally pulled the price above the 20-day moving average, which is currently converging with the 50-day moving average. After BTC failed to hold $95,000 and liquidate the short positions in that zone, it appears that some traders cut their positions to take profit in anticipation of a lower support retest of the 20-MA at $89,400.
If the current trend were to extend and volume permitting, over the coming days, another attack on the $95,000 level could occur. Such a move could lead to short covering and liquidations, allowing bulls to exploit a clear gap in the volume profile of the BTC/USDT (Binance) pair, setting Bitcoin up for a 13% rally to $101,500.
As shown in the chart below, the bulk of this week’s intra-day Bitcoin price action was driven by traders using perpetual futures to trigger liquidations. Note how a near $1.1 billion surge in futures buy volume took place as BTC rallied to $94,800 on Jan. 5, and $100 million in shorts were liquidated in the BTC/USDT pair at Binance, according to data from TRDR.io.
Example of perps traders driving Bitcoin price action. Source: TRDR.io
As detailed earlier, current liquidation heatmap data and orderbook structure suggest that a similar event could occur again if traders press BTC price to $94,000.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
The Nasdaq Stock Exchange and the Chicago Mercantile Exchange (CME) Group joined forces to unify their crypto indexes, rebranding the Nasdaq Crypto Index (NCI) as the Nasdaq-CME Crypto Index.
The NCI benchmark index includes Bitcoin (BTC), Ether (ETH), XRP (XRP), Solana (SOL), Chainlink (LINK), Cardano (ADA) and Avalanche (AVAX), spokespersons for Nasdaq confirmed to Cointelegraph.
Sean Wasserman, head of index product management at Nasdaq, said in Friday’s announcement:
“We see the index-based approach as the direction investors are heading, beyond just Bitcoin. That’s similar to what we’ve seen in other asset classes, where you have indexes that are representative of the broader market.”
The price of the NCI benchmark index at the time of writing. Source: Yahoo Finance
The announcement comes amid an institutional rush into crypto, digital assets, and blockchain technology, as traditional financial infrastructure integrates digital rails to prepare for an internet-first economy.
Crypto index products remove the technical complexity of analyzing a broad range of digital assets, including tokens across different sectors, making them ideal for passive investors seeking crypto exposure, Peck told Cointelegraph.
There were 29.66 million cryptocurrencies listed on CoinMarketCap at time of writing, with more tokens listed daily.
The number of listed tokens on CoinMarketCap exploded in 2024 and continues to increase. Source: CoinMarketCap
Matt Hougan, chief investment officer at Bitwise, shares the same view and said he was “most excited” for the growth of crypto index products in 2026.
The demand for these investment vehicles will be driven by investors seeking small, passive crypto allocations who cannot commit to deep analysis on the constantly growing sector, Hougan said.
“The market is getting more complex, and the use cases are multiplying,” Hougan said in December
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Bitcoin bulls will have to successfully defend the moving averages to increase the possibility of a break above $95,000.
Most major altcoins have turned down from their overhead resistance levels, indicating that the bears are active at higher levels.
Buyers are attempting to maintain Bitcoin (BTC) above the $90,000 level, but the bears continue to exert pressure. Material Indicators cofounder Keith Alan said in a post on X that BTC could slump to the $87,500 to $89,000 support zone. An even lower target was projected by trader Roman, who expects a drop to the $76,000 level.
However, CryptoQuant CEO Ki Young Ju said in a post on X that BTC is unlikely to see a 50% crash from its all-time high, similar to previous bear markets. He anticipates BTC to remain “sideways for the next few months.”
Crypto market data daily view. Source: TradingView
On a slightly longer-term perspective, there are positive signs for the bulls. BTC has averaged 95% gains in the year following a down year, according to Smarter Web Company Bitcoin strategy head Jesse Myers. If history repeats, 2026 could be a positive year for BTC, following the 6.33% drop in 2025.
Could BTC and the major altcoins rebound off their support levels? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price prediction
BTC has pulled back to the moving averages, indicating that the bears are aggressively defending the $94,789 level.
Both moving averages are flattening out, and the relative strength index (RSI) is at the midpoint, indicating a balance between supply and demand. The advantage will tilt in favor of the bulls if they push the Bitcoin price above the $94,789 resistance. The BTC/USDT pair could then skyrocket to the psychological level of $100,000.
Instead, if the price skids below the moving averages, it signals that the pair may remain inside the $84,000 to $94,789 range for a few more days. Sellers will be back in the driver’s seat on a close below $84,000.
Ether price prediction
Ether (ETH) remains inside the symmetrical triangle pattern, indicating uncertainty about the next directional move.
If the Ether price turns up from the moving averages and breaks above the resistance line, it suggests that the bulls have overpowered the bears. The ETH/USDT pair could surge to $3,659 and later to $4,000.
Conversely, if the price continues lower and breaks below the support line, it signals that the advantage has tilted in favor of the bears. The pair could then plunge to $2,623 and subsequently to $2,111.
XRP price prediction
Sellers successfully defended the downtrend line and have pulled XRP (XRP) to the moving averages.
The upsloping 20-day exponential moving average (EMA) ($2.04) and the RSI in the positive zone signal that buyers have an edge. If the price rebounds off the moving averages with strength, the possibility of a break above the downtrend line increases. If that happens, the XRP/USDT pair could rally toward $2.70, signaling a trend change.
Alternatively, a drop below the moving averages suggests that the XRP price could remain inside the descending channel pattern for a while longer.
BNB price prediction
BNB’s (BNB) pullback from the $928 level is finding support at the moving averages, indicating that the bulls are active at lower levels.
The bulls will attempt to thrust the BNB price above the $928 level, completing a bullish ascending triangle pattern. If they do that, the BNB/USDT pair could rally toward the pattern target of $1,066.
Contrary to this assumption, if the price breaks below the moving averages, it suggests a lack of demand at higher levels. The pair could drop to the uptrend line and then to the $790 support.
Solana price prediction
Solana (SOL) rebounded off the moving averages on Thursday, indicating that the dips are being viewed as a buying opportunity.
The bulls will attempt to strengthen their position by pushing the Solana price above the $147 level. If they manage to do that, the SOL/USDT pair could surge toward $172. That suggests the corrective phase may be over.
This positive view will be invalidated in the near term if the price turns down from the current level or the overhead resistance and breaks below the moving averages. The pair may then tumble to $117.
Dogecoin price prediction
Dogecoin (DOGE) turned down from the $0.16 resistance on Tuesday and has reached the moving averages.
The 20-day EMA ($0.14) is turning up gradually, and the RSI is just above the midpoint, indicating a slight edge to the buyers. A close above the $0.16 level suggests that the market has rejected the break below the $0.13 support. The DOGE/USDT pair may then climb to $0.19.
On the contrary, a break below the moving averages indicates that the Dogecoin price could remain range-bound between $0.12 and $0.16 for some time. The next leg of the downtrend could begin on a close below $0.12.
Cardano price prediction
Cardano (ADA) has pulled back to the moving averages, which is expected to act as strong support.
If the Cardano price rebounds off the moving averages, the likelihood of a rally to the breakdown level of $0.50 increases. Sellers are expected to aggressively defend the $0.50 level, as a break above it indicates a potential trend change.
On the downside, a break below the $0.37 support suggests that the bears continue to exert pressure. The ADA/USDT pair could then descend to the $0.33 level, which is likely to attract buyers.
The upsloping moving averages and the RSI in positive territory indicate that the bulls have the upper hand. Buyers will strive to push the Bitcoin Cash price above the $670 level. If they succeed, the BCH/USDT pair could surge toward the stiff overhead resistance at $720.
The first sign of weakness will be a close below the moving averages. That suggests the breakout above $631 may have been a bull trap. The pair may then collapse toward $518.
Chainlink price prediction
Chainlink (LINK) is witnessing a tough battle between the bulls and the bears near the moving averages.
If the price rebounds off the moving averages with strength, the bulls will attempt to propel the LINK/USDT pair above the $14.98 resistance. If they can pull it off, the Chainlink price could rally toward $17.66.
On the other hand, if the price skids below the moving averages, it suggests that the pair could swing inside the $11.61 to $14.98 range for a few more days. Sellers will have to sink the price below the $10.94 support to seize control.
Hyperliquid price prediction
Hyperliquid (HYPE) turned down from the 50-day simple moving average (SMA) ($28.48) on Wednesday and slipped below the 20-day EMA ($26.21) on Thursday.
The next support on the downside is at the uptrend line. If the price turns up sharply from the uptrend line, it suggests that the bulls are buying on dips. The HYPE/USDT pair could then reach the overhead resistance at $29.37.
Contrarily, if the price continues lower and breaks below the uptrend line, it signals that the bulls have given up. The Hyperliquid price could then slump toward the $22.19 level, where the buyers are expected to step in.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Bitcoin (BTC) can hit $105,000 within weeks as a classic leading indicator stays bullish, says the latest market analysis.
Key points:
Bitcoin is enjoying bullish RSI signals on multiple timeframes as price action consolidates.
A weekly RSI breakout occurred in December and continues to hold.
Concerns about BTC price strength remain as traders still see new lows to come.
RSI offers $105,000 BTC price target
In an X post on Thursday, trader BitBull noted an ongoing breakout on Bitcoin’s weekly relative strength index (RSI).
While BTC price action stays rangebound, an important RSI trend shift has in fact already been in play since December.
A downtrend on the indicator, which measures how “overbought” or “oversold” BTC/USD is at a given level, began in September, with price breaking through it before the 2025 yearly candle close.
“$BTC weekly RSI is calling for more upside here. Broke out of its 3-month downtrend and holding above the breakout line,” BitBull commented.
An accompanying chart compared the latest breakout with one from earlier last year, which resulted in several months of BTC price gains after April’s local lows of $75,000.
“I think BTC could hit $103K-$105K in 3-4 weeks,” he added.
BTC/USDT one-week chart with RSI data. Source; BitBull/X
This week, James Easton, host of crypto trading podcast DeCRYPTion, had good news about RSI on the two-week chart.
The indicator, he noted, is now at lower levels than during the pit of Bitcoin’s last full bear market in late 2022.
“It has also just flipped bullish. Strap in,” he told X followers.
BTC/USD two-week chart with RSI data. Source: James Easton/X
On lower timeframes, RSI signals also appear encouraging, per data from TradingView.
The four-hour chart showed a potential hidden bullish divergence, where lower lows for RSI contrast with higher lows for price itself.
This has the implication of weakening sell-side pressure as Bitcoin attempts to cement $90,000 as a support zone.
BTC/USD four-hour chart with RSI data. Source: Cointelegraph/TradingView
“Clear US buyer” battles Bitcoin sell pressure
As Cointelegraph reported, traders still expect lower levels to emerge as the market attempts to find a long-term support base.
Analyzing exchange order-book behavior on the day, trader Skew flagged a passive seller active at $91,500, keeping price suppressed.
“They’re quoting around 60 – 100 BTC each time so not really that significant but it likely tells me the buy pressure during US session was related to a clear US buyer,” he concluded.
BTC/USDT order book data (Binance). Source: Skew/X
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Cryptocurrency company Ripple is expanding its regulatory footprint after securing authorization from the United Kingdom’s Financial Conduct Authority (FCA).
The FCA granted Ripple’s UK subsidiary, Ripple Markets UK, an Electronic Money Institution (EMI) registration and registered it under the UK’s Money Laundering Regulations (MLRs), according to official records.
The EMI license allows companies to provide payment services and issue electronic money, a move that could potentially impact Ripple as it issues its stablecoin, Ripple USD (RLUSD).
Certain Ripple products may require further FCA approval
Although Ripple Markets UK is now approved as an EMI and registered under the MLRs, it remains subject to restrictions pending further FCA approval.
“Ripple Markets UK will not, without the prior written consent of the authority,” provide services involving crypto ATMs, “offer or commence any services to retail clients,” or appoint any agents or distributors, according to FCA records.
Source: FCA
Additionally, the company is barred from issuing electronic money, or providing payment services to a “consumer, micro-enterprise or charity,” the records said.
Bitcoin Cash shows bullish momentum with analysts projecting $720-750 targets within 30 days. Technical analysis reveals neutral RSI at 57.79 with key resistance at $655.
Bitcoin Cash (BCH) is currently trading at $631.20, showing resilience despite broader market volatility. With the anticipated May 2026 CashVM upgrade creating positive sentiment, multiple analyst forecasts suggest significant upside potential in the coming weeks.
What Crypto Analysts Are Saying About Bitcoin Cash
Recent analyst coverage has been notably bullish on BCH’s prospects. MEXC News issued an optimistic Bitcoin Cash forecast on January 8, projecting “a 70% probability of BCH reaching $720-$750 within the next 30 days, contingent on breaking above $669.60 resistance.”
Earlier in the week, the same platform identified the “$615-630 zone, representing the convergence of the upper Bollinger Band ($615.15) and the 52-week high resistance area ($624.90)” as their primary BCH price prediction target.
CoinEdition analysts noted that “BCH is pressing the $630–$666 multi-year resistance as markets price in the May 2026 CashVM upgrade,” highlighting the fundamental catalyst driving current momentum.
BCH Technical Analysis Breakdown
The current technical picture for Bitcoin Cash presents a mixed but increasingly bullish setup. At $631.20, BCH is trading above its 20-day SMA ($611.01) and well above longer-term moving averages, including the 50-day SMA at $580.64 and 200-day SMA at $552.03.
The RSI reading of 57.79 indicates neutral momentum with room for upward movement before reaching overbought conditions. However, the MACD histogram at 0.0000 suggests bearish short-term momentum, indicating potential consolidation before the next leg higher.
Bitcoin Cash’s position within the Bollinger Bands at 0.71 (where 1.0 represents the upper band) shows the asset is in the upper portion of its recent trading range, with the upper band at $659.33 serving as immediate resistance.
Key resistance levels stand at $643.13 (immediate) and $655.07 (strong resistance), while support is found at $619.13 (immediate) and $607.07 (strong support). The daily ATR of $27.91 indicates moderate volatility levels.
Bitcoin Cash Price Targets: Bull vs Bear Case
Bullish Scenario
The bullish Bitcoin Cash forecast hinges on breaking through the $669.60 resistance level identified by analysts. A successful breakout could trigger the projected move toward $720-$750, representing a 14-19% gain from current levels.
Technical confirmation would come from RSI breaking above 65, MACD turning positive, and volume expansion on the breakout. The approaching CashVM upgrade provides fundamental support for this scenario.
Bearish Scenario
Should BCH fail to maintain current levels, the primary downside target would be the $607.07 strong support level, representing a 4% decline. A break below this level could see Bitcoin Cash testing the 50-day moving average at $580.64.
Risk factors include broader crypto market weakness, delayed upgrade implementation, or failure to break through the multi-year resistance zone around $630-$666.
Should You Buy BCH? Entry Strategy
For traders considering BCH exposure, the current price around $631 offers a reasonable entry point near the analyst-identified target zone. Conservative buyers might wait for a pullback to the $615-620 support area.
A stop-loss below $607 would limit downside risk to approximately 4%, while upside targets of $720-$750 offer a favorable risk-reward ratio. Dollar-cost averaging on any weakness toward $620 could optimize entry positioning.
Position sizing should account for crypto volatility, with many traders limiting individual coin exposure to 2-5% of their total portfolio.
Conclusion
The BCH price prediction outlook appears increasingly positive, with multiple analyst targets converging around the $720-$750 level for February. Technical indicators support this view, though short-term consolidation around current levels is likely before the next major move.
The 70% probability assigned by analysts to reaching these targets reflects the strong fundamental backdrop from the CashVM upgrade anticipation. However, cryptocurrency price predictions remain inherently uncertain, and traders should always implement proper risk management strategies.
Disclaimer: Cryptocurrency investments carry significant risk. This analysis is for informational purposes only and should not be considered financial advice. Always conduct your own research and consider your risk tolerance before investing.
The Optimism Foundation has floated a major shakeup to the dynamics of the layer 2’s OP token, proposing to allocate 50% of its Superchain revenue to regular buybacks of the asset.
Optimism Grants council member Michael Vander Meiden shared the proposal via X on Thursday, highlighting that “after many years of being a ‘useless gov token’ the value of the OP token will finally be tied to network activity.”
The proposal was initially submitted in the Optimism governance forum on Wednesday. It outlines a plan to direct 50% of incoming Superchain revenue to monthly Optimism (OP) buybacks that will flow back into the token treasury.
“These tokens can then be burned or distributed as staking rewards as the platform evolves. Governance will retain oversight over parameters that control the buyback and the token treasury,” the Optimism Foundation said.
Optimism wants to grow OP utility beyond governance
The move is part of a push to expand OP utility beyond primarily governance into something that is “tightly aligned with the growth of the Superchain,” and could provide a major boost to OP holders and builders within the ecosystem.
“As the Superchain evolves, the token may take on additional functionality aligned with the network’s long-term decentralization and resilience, including roles in securing shared infrastructure, coordinating sequencer rotation, and enabling collective governance over core protocol functions,” the Optimism Foundation said.
The proposal outlined the importance of relativizing OP to reflect the growth of Optimism from being an “experiment” in Ethereum scaling to an ecosystem hosting a significant amount of total layer 2 activity.
“The Superchain captured 61.4% L2 fee market share and processes 13% of all crypto transactions, and that share continues to rise. The OP token should be aligned with that momentum and growth,” the team said.
Optimism’s Superchain was launched back in February 2023 and consists of a network of layer-2 (L2) chains built with the project’s open-source OP stack. The ecosystem hosts chains such as Unichain, Ink and Coinbase’s L2 Base.
The OP token had a tough 2025, with its price declining by nearly 83%. The price has yet to bounce this week on the news of the proposal.
Bitcoin’s start of year rally ran into stiff resistance near $93,000, triggering a pullback that has shifted the market’s focus back to key support levels. While the higher-time-frame (HTF) structure still looks fragile, the lower time frame (LTF) signal suggests bulls may yet have room to regain control if critical levels hold.
Key takeaways:
Bitcoin rejected at $93,000 for the third time, slipping back toward weekly lows near $89,250.
Rising open interest during the dip suggests shorts are building positions near $90,000.
Strong passive bids around $90,000 could act as a springboard, or fail and open the door to the $86,000 to $87,000 range.
Bitcoin bulls need to hold $90,000
After an 8% surge to $93,000, Bitcoin (BTC) printed a swing failure pattern (SFP) at the same resistance level for the third time. The rejection pushed BTC down to weekly lows near $89,250, reviving the risk of consolidation or bearish continuation in line with the broader HTF trend.
Still, the LTF structure leaves room for a bullish response. Bitcoin is currently testing a key order block between $89,200 and $90,500, the first area of interest where bulls could attempt fresh long entries if momentum flips positive.
Adding to this support, BTC continues to hold above the monthly rolling VWAP (volume-weighted average price), which turned bullish again at the start of 2026.
In the near term, Bitcoin could chop sideways into the weekly close. A decisive bullish engulfing recovery above $91,666 would mark the first confirmation of bullish continuation, forming a higher low on the LTF trend and potentially trapping late shorts positioned from $90,000 to $92,000.
Bitcoin open interest and price. Source: Coinalyze
Open interest data strengthens this setup. As BTC dipped to $90,000 from $92,000, open interest climbed sharply, a sign that short positions are building. If BTC can defend $90,000, a short squeeze becomes likely. A strong daily close above $91,700 would be the first signal, opening the path for another test of $93,000.
However, failure to hold above $89,000 would quickly expose internal liquidity from $86,000 to $87,000, giving sellers a clear downside target.
Data from CoinGlass shows the aggregated order book liquidity delta flashing strong passive bids at about $90,000. Over the past two weeks, similar bid absorption has preceded short-term recoveries, a pattern that could repeat if buyers continue to defend this zone.
Bitcoin order book liquidity delta chart. Source: CoinGlass
That being said, futures trader Byzantine General cautioned that rising open interest cuts both ways. The analyst said:
“Liquidations data suggests that there’s a good amount of vulnerable longs in there. I could see a little bounce here at 90k, but ultimately it makes sense to me that it takes out those local lows around 86k.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Korea’s crypto bill is stalled over stablecoin issuer rules.
The central bank wants banks to remain in control, often framed as a “51%” threshold.
Regulators and lawmakers fear a bank-only model would limit competition.
Firms are lining up, with Toss planning a won-backed stablecoin once rules are finalized.
South Korea’s next major crypto law is being held up by a seemingly simple question: Who gets to issue a won-backed stablecoin?
The proposed Digital Asset Basic Act has slowed as regulators clash over whether stablecoins should be treated as bank-like money or as a licensed digital-asset product.
At the center is the Bank of Korea’s push for a “banks-first” model, ideally through bank-led consortia with at least 51% bank ownership, arguing that stablecoins could, in their view, spill over into monetary policy, capital flows and financial stability if they scale too quickly.
The Financial Services Commission and lawmakers, meanwhile, are wary that a bank-dominated regime could materially limit competition and slow innovation.
The standoff is now expected to push the bill into 2026.
Why Korea cares about won-stablecoins
Stablecoins in South Korea are already important to local traders who move value into crypto markets, often via dollar-pegged tokens to access offshore liquidity. If stablecoin use scales, it could amplify cross-border flows and complicate foreign-exchange management, especially in a market where crypto participation and retail exposure are unusually high.
That is why the Bank of Korea continues to frame issuer rules as a “financial stability” decision. Officials argue that a cautious, staged rollout, starting with tightly regulated banks, reduces the risk of sudden outflows or a loss of control over how “private money” circulates.
At the same time, policymakers who want more companies to be allowed to issue won-backed stablecoins view the issue as one of competitiveness. If Korea does not build a trusted local option, users will continue to rely on foreign stablecoins, leaving the country with less regulatory visibility and fewer opportunities to grow a domestic stablecoin industry.
Did you know? In the 12 months through June 2025, stablecoin purchases denominated in Korean won totaled about $64 billion in South Korea, according to Chainalysis.
The regulatory backdrop
South Korea’s first major crypto regulatory act was the Act on the Protection of Virtual Asset Users. It is built around market safety, including the segregation and custody of customer funds, with banks designated as custodians for user deposits. The framework also mandates cold-wallet storage, criminal penalties for unfair trading and insurance or reserve requirements to cover hacks and system failures.
However, that “phase 1” framework is mainly focused on how exchanges and service providers protect users. The unresolved dispute lies in the next step, the proposed Digital Asset Basic Act, where lawmakers and regulators aim to define stablecoin issuance, supervision and issuer eligibility.
This is precisely where the bill is bogging down. When Korea tries to answer the question of who can issue stablecoins, the Bank of Korea and the financial regulator diverge.
Did you know? South Korea’s crypto rules require licensed service providers to keep at least 80% of customer assets in offline cold wallets to protect against hacks and theft.
Three institutions, three incentives
South Korea’s stablecoin standoff is ultimately a dispute over which institution should have primary responsibility when private money becomes systemically important.
The Bank of Korea is approaching won-backed stablecoins as a potential extension of the payments system and, therefore, as a monetary policy and financial stability issue. Its senior leadership has argued for a gradual rollout that begins with tightly regulated commercial banks and only later expands to the broader financial sector to reduce the risk of disruptive capital flows and knock-on effects during periods of market stress.
The Financial Services Commission views the same product as a regulated financial innovation that can be supervised through licensing, disclosure, reserve standards and ongoing enforcement, without hard-wiring the market to banks as the default winners.
That is why the FSC has pushed back against the idea that issuer eligibility should be determined mainly by ownership structure and why leaked and proposed approaches have reportedly examined multiple models rather than treating bank control as the only safe option.
Then there are lawmakers and party task forces, who are weighing political promises, industry pressure and the optics of competitiveness.
Some proposals have contemplated relatively low capital thresholds for issuers, which the central bank has described as increasing instability risks. Others argue that a bank-first regime could simply delay product market fit and push activity toward offshore dollar stablecoins.
Even the “51% rule” debate has a local twist. The Bank of Korea has warned that allowing non-bank corporates to take the lead could collide with Korea’s long-standing separation between industrial and financial capital.
Did you know? Major Korean exchanges such as Bithumb and Coinone added USDT/KRW trading pairs starting in December 2023, making stablecoins easier to access directly with the won.
The “51% rule”: What it is, why it exists and why it’s controversial
In its strictest form, the Korean media-dubbed “51% rule” suggests that a won-backed stablecoin issuer should be a consortium led by commercial banks, with banks holding at least a 51% ownership stake. This structure would effectively ensure that banks control governance, risk management and, crucially, redemption operations.
The logic is that if stablecoins begin functioning like money at scale, they can influence monetary policy transmission, capital flows and financial stability. A bank-led structure is intended to import prudential discipline from day one, including capital standards, supervisory culture, Anti-Money Laundering (AML) controls and crisis management, rather than attempting to bolt those safeguards on after a non-bank issuer has already reached systemic size.
The opposition is just as direct. The Financial Services Commission and pro-industry lawmakers argue that hard-wiring bank control into the rules could reduce competition, slow experimentation and effectively shut out capable fintech or payments firms that might deliver better distribution and user experience.
Critics also point out that mandatory ownership thresholds are an indirect way to regulate risk and not the only one, given the availability of reserve requirements, audits, redemption rules and supervisory powers.
It’s not just about who issues stablecoins
Even if South Korea ultimately allows non-banks to issue won-backed stablecoins, regulators still have plenty of levers to prevent the product from exhibiting shadow-bank-like risk characteristics.
The government’s draft approach has focused on reserve quality and segregation, steering issuers toward highly liquid, low-risk backing such as bank deposits and government debt. Reserves would be held through third-party custody and structurally separated from the issuer to reduce bankruptcy spillover.
Then there is the “money-like” principle of quick redemption at par. Publicly discussed proposals include clear redemption rules and tight timelines, which are designed to prevent a stablecoin from turning into a gated fund during periods of market stress.
Korea’s broader regulatory posture already points in this direction. The Financial Services Commission has been building a user-protection regime around custody standards and strict operational requirements, such as offline storage thresholds for customer assets, showing that regulators are comfortable setting concrete technical guardrails rather than relying solely on licensing decisions.
Industry pressure and what to watch in 2026
There is urgency. The regulatory standoff is unfolding while the market is already preparing for won-backed stablecoins.
Major commercial banks are gearing up for a bank-led model, while large consumer platforms and crypto-native players are exploring how they could issue or distribute a won-pegged token if the rules allow it. Multiple banks and major companies are reportedly positioning for this market even as the policy debate drags on.
Fintech firms, however, do not want to operate inside a bank-controlled consortium. Toss is a clear example. The company has said it is preparing to issue a won-based stablecoin once a regulatory framework is in place, treating legislation as the gate that determines whether the product can launch.
This push and pull is why delays matter. The longer Korea debates issuer eligibility, the more everyday stablecoin activity defaults to offshore, dollar-based infrastructure, and the harder it becomes to argue that the slow pace reflects a deliberate choice rather than lost time.
So, what happens in 2026? Scenarios under consideration include:
Staged licensing, with banks first and broader participation later, is an approach the Bank of Korea has publicly supported.
Open licensing with a “systemic” tier, where larger issuers face heavier requirements.
Bank-led consortia that are allowed but not mandatory, easing the fight over the “51% rule.”
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