South Korea plans to bring stablecoins under its foreign exchange rules by treating them as payment instruments. The Bank of Korea (@bok_hub) says it will work with the government this year t
South Korea plans to bring stablecoins under its foreign exchange rules by treating them as payment instruments. The Bank of Korea (@bok_hub) says it will work with the government this year to draft changes to the Foreign Exchange Transactions Act.
In a business status report submitted for the National Assembly audit, the central bank said it is consulting with the government on how to regulate cross-border transactions involving virtual assets. It is also preparing a monitoring system, including reporting through the foreign exchange data network.
The Bank of Korea explained that crypto transactions enable cross-border transfers outside traditional financial institutions, while tools such as mixers and unhosted wallets increase anonymity and make illicit activity easier.The move also responds to last year's National Assembly audit, when lawmakers urged the bank to establish a regulatory framework for virtual assets.
The amendment is still a plan. It is not yet enacted and will develop alongside the broader Digital Asset Basic Act. Reports on social media have described the shift as formal recognition of dollar stablecoins such as $USDT and $USDC. However, the ministry's official announcement describes a registration and reporting framework for virtual asset transfer businesses, and its published explanation does not establish a blanket reclassification of USDT or USDC as legally recognized payment instruments.
A separate change to the same law is already scheduled. South Korea will require registration and reporting for cross-border crypto transfers from December 3, including exchanges and private wallets.The amendment passed on May 7, 2026, and requires virtual asset transfer businesses to register with the Ministry of Economy and Finance.
The Financial Services Commission (@FSC_Korea) says talks on the Digital Asset Basic Act are in their final stage. FSC Chairman Lee Eog-weon told the National Assembly's Political Affairs Committee on October 22 that consultations are nearly complete.The act seeks to establish a comprehensive crypto framework, including licensing regimes for exchanges and rules for stablecoin issuance.
Key questions remain open. Unresolved points include platform oversight, limits on exchange ownership, and whether bank-led consortia should get priority to issue won-backed stablecoins.A National Assembly review is planned for November 2026.
Together, the two tracks would place stablecoin payments and cross-border crypto flows under both foreign exchange oversight and a dedicated licensing regime. Details of the Bank of Korea's draft amendment have not yet been published.
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