TREE NEWS update: South Korea’s government and central bank are pushing to amend the Foreign Exchange Transactions Act to bring stablecoins under regulation as payment instruments. The country is also drafting a Basic Act on Digital Assets that would establish a licensing regime for crypto exchanges and set rules for stablecoin issuance.
South Korea Moves to Regulate Stablecoins as Payment Tools Under Foreign Exchange Act
South Korea's approach stands out because it treats stablecoins primarily as payment instruments under existing foreign exchange law rather than as a standalone crypto asset class, which ties oversight to cross-border money movement and the central bank's turf. The parallel licensing regime for exchanges and issuance rules signal a preference for supervised infrastructure over prohibition, a meaningful contrast with jurisdictions still legislating in pieces. The two tracks could create overlapping obligations for issuers and exchanges, so whether the foreign exchange framing and the digital asset law end up consistent is the open question worth watching.
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