South Korea stablecoin rules advance as government plans forex law overhaul
South Korea plans to amend its foreign exchange framework this year to legally recognise stablecoins as payment instruments. As reported by The Block, the Bank of Korea and the government are coordinating measures to monitor cross-border crypto transactions while concluding work on the comprehensive Digital Asset Basic Act.
⚡ Key numbers:
- 8 p.m. – proposed extended operating cutoff for large-value payment systems
- 3.0% – Bank of Korea policy rate held unanimously
- 1323 KRW – two-year high recorded against the US dollar
Recognising stablecoins under foreign exchange legislation
South Korea's government and the Bank of Korea are drafting an amendment to the Foreign Exchange Transactions Act before the end of the year. According to local outlet Digital Asset, the proposed statute defines stablecoins as payment instruments and introduces surveillance mechanisms for cross-border digital asset flows.
The central bank explained that cryptocurrency infrastructure permits transfers outside established banking corridors, with unhosted wallets and mixer services heightening anonymity risks. The reform addresses demands raised during last year's National Assembly audit, where lawmakers urged officials to extend large-value payment system hours to 8 p.m. and establish safeguards against money laundering as international trading platforms enter the domestic ecosystem.
Digital Asset Basic Act approaches legislative review
In tandem with the foreign exchange amendments, South Korean authorities are finishing work on the Digital Asset Basic Act. This overarching legislation aims to standardise licensing regimes for cryptocurrency exchanges and institute formal rules governing stablecoin issuance.
Financial Services Commission Chairman Lee Eog-weon confirmed during a parliamentary hearing that discussions on the statute are nearing completion. The Bank of Korea noted it will continue inter-agency consultations to prevent regulatory arbitrage from emerging during the legislative transition.
Monetary backdrop and currency strength
The regulatory initiative coincides with firm monetary conditions in Seoul. According to Societe Generale, the Bank of Korea unanimously maintained its benchmark interest rate at 3.0% with a hawkish stance focused on returning inflation to 2%. Strong export figures and exporter currency sales pushed the Korean won to a two-year peak near 1323 per US dollar.
What to watch next
- Joint submission of the foreign exchange amendment bill to lawmakers before year-end
- Presentation of the finished Digital Asset Basic Act by the Financial Services Commission
- Introduction of enhanced oversight rules targeting mixers and unhosted cross-border crypto transfers
Frequently asked questions
How will South Korea regulate stablecoins?
The government and central bank plan to revise foreign exchange laws this year to classify stablecoins as recognized payment instruments and supervise cross-border transfers.
What is the purpose of the Digital Asset Basic Act?
The legislation establishes comprehensive standards for South Korea's crypto industry, including mandatory licensing for exchanges and issuance parameters for stablecoins.
When will the regulatory proposals be introduced?
Officials plan to introduce the foreign exchange amendment within the year, while FSC Chairman Lee Eog-weon indicated the crypto framework bill is nearing completion.
Sources: The Block (citing Digital Asset), FXStreet.
Disclaimer: This article is for information purposes only and does not constitute investment advice. Data as of Oct 23, 2026, 15:15 may vary by source. Trading leveraged CFDs carries a high risk of losing money.
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