South Korean financial regulators are moving to exclude major dollar-pegged stablecoins, specifically Tether's USDT and Circle's USDC, from upcoming guidelines for corporate cryptocurrency trading. The Financial Services Commission (FSC) is preparing "Corporate Virtual Currency Trading Guidelines" that will allow listed companies and registered professional investment firms to invest in digital assets, but will restrict these investments to top cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
The proposed rules would limit corporate crypto investments to a maximum of 5% of a company's capital, with transactions required to go through regulated domestic exchanges such as Upbit and Bithumb. The exclusion of USDT and USDC is primarily due to a conflict with the country's Foreign Exchange Transactions Act, which does not currently recognize stablecoins as a legitimate means for cross-border payments. An amendment to include them has been proposed but is still under review by the National Assembly.
Regulators have expressed concern that allowing corporate investment in stablecoins in the early stages of the market could lead to "indiscriminate investments" and uncontrolled financial activity. Despite the proposed ban, some South Korean companies are already using personal wallets or overseas exchanges to access stablecoins for international trade settlements, citing their speed and lower costs for hedging against exchange rate risks.
This move aligns with South Korea's broader push to develop a Korean Won (KRW)-pegged stablecoin to reduce reliance on U.S. dollar alternatives, a trend also seen in other nations like China and Russia. The decision comes as Asia dominates global stablecoin activity, accounting for 60% ($245 billion) of total volume in 2025.
