South Korea plans forex law revision to regulate stablecoins as payment tools
South Korea's government and central bank plan to amend the Foreign Exchange Transactions Act this year to treat stablecoins as payment instruments, alongside upcoming reporting mandates for cross-border crypto transfers.
South Korea's government and the Bank of Korea plan to draft changes to the Foreign Exchange Transactions Act this year to regulate stablecoins as payment instruments, according to local outlet Digital Asset and reporting by BSCN. The proposal was detailed in a status report prepared by the central bank for the National Assembly's annual audit, which also outlined plans for a new monitoring system covering cryptocurrency flows.[1][2][6]
The planned revision coincides with South Korea's preparation of the Digital Asset Basic Act, which aims to establish a comprehensive framework for the cryptocurrency sector. The legislation will create licensing regimes for exchanges and establish formal rules for stablecoin issuance, with the Financial Services Commission noting that discussions on the bill have entered their final stage.[1][3][6]
In parallel, a separate amendment to the Foreign Exchange Transactions Act is scheduled to take effect in early December, requiring businesses facilitating cross-border virtual asset transfers to register and report transactions through South Korea's foreign exchange reporting system. The incoming reporting regime covers transfers involving overseas exchanges, foreign custodians, and personal wallets, though it has not yet been confirmed whether tokens like USDT and USDC will be formally designated as payment instruments or handled strictly under reporting rules.[1][4][5]
Key facts
- South Korea's government and the Bank of Korea plan to draft revisions to the Foreign Exchange Transactions Act this year to regulate stablecoins as payment instruments.
- The plan was outlined in a Bank of Korea status report for the National Assembly's annual audit, which also described a new system to monitor cryptocurrency flows.
- The Financial Services Commission indicated that discussions on the Digital Asset Basic Act, which will establish licensing rules for exchanges and stablecoin issuance regulations, are in their final stage.
- A separate amendment to the Foreign Exchange Transactions Act taking effect in early December requires firms handling cross-border virtual asset transfers, including transactions involving private wallets, to register and report.
- Authorities have not yet confirmed whether USDT and USDC will be formally classified as payment instruments or covered solely by reporting rules.
Sources · 6 sources
- BS
BSCN@BSCNewsPost on X ·
South Korea plans to bring stablecoins under its currency rules as payment tools The Bank of Korea (@bok_hub) says it will work with the government this year to draft changes to the Foreign Exchange Transactions Act to regulate stablecoins as payment instruments. The plan appears in a status report prepared for the National Assembly’s annual audit, alongside a new system to monitor crypto flows. A separate change to the same law takes effect December 3, requiring firms that move crypto across borders to register and report. The Financial Services Commission (@FSC_Korea) says talks on the Digital Asset Basic Act, which would license exchanges and set stablecoin rules, are in their final stage.
Open source - CO
CoinMarketCap@CoinMarketCapPost on X ·
LATEST: 🇰🇷 South Korea's government and Bank of Korea plan to revise the Foreign Exchange Transactions Act this year to treat stablecoins as payment instruments, per Digital Asset. https://t.co/jWgXEkkiWo
Open source - TB
The BlockArticle ·
South Korea to amend forex law to regulate stablecoins as payment instruments: report South Korea is currently developing the Digital Asset Basic Act, which seeks to establish a comprehensive framework for crypto.
Open source - CN
crypto.news@cryptodotnewsPost on X ·
JUST IN: South Korea moves to place cross-border stablecoin transfers under forex reporting and capital controls The amended Foreign Exchange Transactions Act takes effect Dec. 3, 2026, introducing registration requirements for businesses handling cross-border virtual asset transfers, including transfers involving private wallets; however, it has not been confirmed whether $USDT and $USDC will be formally classified as payment instruments or covered only by reporting rules.
Open source - TM
That Martini Guy ₿@MartiniGuyYTPost on X ·
South Korea is tightening its oversight of crypto transfers. From December 2, providers will have to report cross-border digital asset transfers involving overseas exchanges, foreign custodians and personal wallets through the country's foreign exchange reporting system. Even transfers between a user's own accounts and wallets can fall within the reporting requirements when covered by the rules. This isn't a ban on self-custody. But it shows how governments are increasingly treating crypto transfers as part of the formal financial reporting system. Privacy and compliance are going to remain major points of tension.
Open source - TB
The Block@TheBlockCoPost on X ·
NEW: The South Korean government and central bank are pushing to amend the country's forex market law to regulate stablecoins as a payment instrument, local news outlet Digital Asset reported. South Korea is currently preparing its crypto regulatory framework — the Digital Asset Basic Act — which would establish licensing regimes for exchanges and rules for stablecoin issuance.
Open source