South Korea Plans Forex Law Change to Treat Stablecoins as Payment Instruments

South Korea is moving to write stablecoins into its foreign exchange rules.

The plan

The Bank of Korea and the government intend to amend the Foreign Exchange Transactions Act this year so stablecoins are regulated as payment instruments, The Block reported, citing local outlet Digital Asset. The central bank said it plans to prepare the bill jointly with the government, along with a framework for monitoring virtual assets and cross-border digital asset transactions.

The step follows a National Assembly audit last year in which lawmakers asked the central bank to bring local payment infrastructure up to global standards and to guard against money laundering risks as global crypto exchanges enter the market.

Concerns the central bank raised

The Bank of Korea noted that crypto lets money move across borders outside traditional banks, and that tools such as mixers and unhosted wallets can add anonymity. It said it will build international cooperation against illegal digital asset activity.

The bigger picture

Separately, the government is drafting the Digital Asset Basic Act, a broad framework that would include licensing for exchanges and rules for stablecoin issuance. Financial Services Commission Chairman Lee Eog-weon said Thursday that discussions on that bill were nearly finished and that the government aims to introduce it as soon as possible.

Why it matters for crypto

South Korea has one of the world's most active retail crypto markets. Clear legal status for stablecoins could open the door to regulated won-based tokens and cross-border payment uses, while giving authorities tighter oversight of capital flows.