South Korea’s government and the Bank of Korea plan to revise the Foreign Exchange Transactions Act this year to regulate stablecoins as payment instruments, according to local news outlet Digital Asset. The central bank said it is coordinating with the government on measures to regulate cross-border transactions in digital assets and intends to jointly prepare a bill within this year that amends the forex law to regulate stablecoins as a means of payment, alongside a monitoring framework for virtual assets.
The amended foreign exchange law is scheduled to take effect on December 3, 2026, introducing mandatory registration and foreign exchange reporting for cross-border cryptocurrency transfers. Under the proposed rules, transfers between cryptocurrency exchanges and private wallets would be covered, with reporting to the Bank of Korea. The draft follows amendments passed by the National Assembly on May 7 and promulgated on June 2, establishing a new category of registered virtual asset transfer businesses.
According to the Ministry of Economy and Finance’s October 7 legislative notice, the regulations will bring cross-border virtual asset transfers under a formal monitoring system, including transactions involving exchanges and private, unhosted wallets. Public comments on the draft close on October 26 before finalization. Qualifying operators would need to register with the finance ministry, connect their systems to the Bank of Korea’s foreign exchange information network, maintain records, and have at least two qualified employees at each business office with relevant foreign exchange experience or approved training.
Exchanges such as Upbit and Bithumb could face new reporting obligations depending on their cross-border transfer activities. The framework would allow information to be shared with the National Tax Service, Korea Customs Service, Financial Supervisory Service and Korea Financial Intelligence Unit. The Financial Services Commission would receive delegated authority over certain supervisory measures and sanctions.
Despite social media reports suggesting South Korea will formally recognize USDT and USDC as official payment instruments from December 3, the ministry’s official announcement describes only a registration and reporting framework for virtual asset transfer businesses. It does not establish a blanket reclassification of dollar-backed stablecoins as legally recognized payment instruments, though stablecoin transfers may fall within the new monitoring framework when they involve covered cross-border activities.
Bank of Korea officials emphasized the need to prevent money laundering risks linked to global crypto exchanges and to combat illegal digital asset transactions, noting that tools like mixers and unhosted wallets increase anonymity. Meanwhile, South Korea is also developing the Digital Asset Basic Act, which would establish a comprehensive crypto framework including exchange licensing and stablecoin issuance rules. Financial Services Commission Chairman Lee Eog-weon said discussions on that bill were nearing completion.
