South Korea to amend forex law to regulate stablecoins as payment tools

what happened

The South Korean government and the Bank of Korea plan to amend the Foreign Exchange Transactions Act this year so that stablecoins are regulated as a means of payment. The Block reports this, citing the local outlet Digital Asset. The central bank said it will prepare a bill with the government and set up a monitoring framework for virtual assets.

The move follows last year's National Assembly audit, in which lawmakers urged the Bank of Korea to bring domestic payment infrastructure up to global standards. Suggestions included extending large-value payment system hours to 8 p.m. and adding safeguards against money laundering through global crypto exchanges. The bank also said it will build international cooperation to tackle illegal digital asset transactions.

why it matters

For markets, the signal is that South Korea is moving toward tighter control of cross-border crypto transfers and stablecoins. A separate Digital Asset Basic Act is in development, covering exchange licensing and stablecoin issuance rules. Financial Services Commission chairman Lee Eog-weon said at a hearing that discussions on that bill are nearing completion. The central bank will coordinate with ministries to limit regulatory arbitrage during any temporary legal gaps.

market impact

Crypto market and stablecoins: stricter rules for cross-border transfers in South Korea

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