South Korea to amend forex law to regulate stablecoins as payment instruments: report
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 Bank of Korea said it is coordinating with the government on measures to regulate cross-border transactions in digital assets.The central bank stated that it intends to jointly prepare a bill with the government within this year that amends the forex law to regulate stablecoins as a means of payment, alongside a monitoring framework for virtual assets.This came in response to last year's National Assembly audit, where the lawmakers asked the Bank of Korea to expand local payment infrastructure to global standards, such as extending the operating hours of large-value payment systems to 8 p.m., and establishing measures to prevent money laundering risks linked to the entry of global crypto exchanges.Framework in progressThe Bank of Korea also stated it would focus on building an international cooperation framework to combat illegal digital asset transactions. The central bank explained that crypto transactions enable cross-border transfers outside traditional financial institutions, while tools like mixers and unhosted wallets increase anonymity — making illicit activities easier to carry out.Meanwhile, South Korea is currently developing the Digital Asset Basic Act, which seeks to establish a comprehensive framework for crypto, including licensing regimes for exchanges and rules for stablecoin issuance. Lee Eog-weon, chairman of the Financial Services Commission, said Thursday during a hearing that discussions on the bill were nearing completion and that the government will work to introduce it as soon as possible.The central bank said it will continue consulting with relevant ministries to minimize regulatory arbitrage that could arise from temporary legislative gaps while the Digital Asset Basic Act takes shape.