South Korea plans to revise foreign exchange law within the year, bringing stablecoins under regulation as payment instruments

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South Korea plans to amend its law to bring stablecoins under regulation as payment instruments and establish a virtual asset monitoring framework.

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【South Korea plans to revise foreign exchange law to classify stablecoins as payment instruments】

According to South Korean digital asset media outlet Digital Asset, the South Korean government and the Bank of Korea (central bank) plan to revise the Foreign Exchange Transactions Act within this year, defining and regulating stablecoins as “payment instruments” and establishing a virtual asset monitoring framework. The Bank of Korea said it is coordinating with the government on regulatory measures for cross-border digital asset transactions and plans to jointly submit a legislative amendment within the year to bring stablecoins, as a means of payment, under the foreign exchange law, alongside a supporting virtual asset monitoring system. The move responds to lawmakers’ requests during last year’s National Assembly audit—to upgrade domestic payment infrastructure to global standards (such as extending the operating hours of the large-value payment system until late 8 at night) and guard against money-laundering risks arising from the entry of global crypto exchanges. The central bank also said it will establish an international cooperation framework to combat illicit digital asset transactions, noting that mixers and self-custody wallets increase anonymity. Meanwhile, South Korea is drafting the Digital Asset Basic Act, covering an exchange licensing regime and stablecoin issuance rules; Financial Services Commission Chairman Lee Eog-weon said at a Thursday hearing that discussion of the bill is nearly complete and that the government will move quickly to advance its introduction. The central bank will continue consulting with relevant agencies to minimize regulatory arbitrage during the legislative gap period.

Key points

The South Korean government and the Bank of Korea plan to revise the Foreign Exchange Transactions Act within this year.
The proposed amendment would define stablecoins as “payment instruments” and bring them under regulation.
The Bank of Korea said it is coordinating with the government on regulatory measures for cross-border digital asset transactions.
South Korea plans to establish a virtual asset monitoring framework and an international cooperation framework to combat illicit digital asset transactions.
South Korea is drafting the Digital Asset Basic Act, which covers an exchange licensing regime and stablecoin issuance rules.
Financial Services Commission Chairman Lee Eog-weon said discussions on the relevant bill are nearly complete.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

This is a regulatory arrangement that remains at the planning and coordination stage: South Korea intends to bring stablecoins under foreign exchange law regulation as payment instruments while monitoring virtual asset activity.

Why it matters to readers

If the amendment advances, stablecoin payments, cross-border transactions, and related platforms may face clearer regulatory arrangements; however, the specific provisions and implementation requirements have not yet been released.

Stablecoins are digital assets typically pegged to the value of a particular asset. The focus here is how South Korea intends to regulate their use for payments and across borders.

Risks and unknowns

The report comes from a digital asset media outlet and does not provide original documents from the South Korean government, the Bank of Korea, or the National Assembly.
The amendment remains at the proposal and coordination stage, and it is unclear whether it will be formally submitted or passed.
The specific scope of application, stablecoin issuance rules, and implementation timeline have not yet been disclosed.
Specific implementation requirements for cross-border transaction monitoring, mixers, and self-custody wallets have not yet been released.

South Korea plans to revise foreign exchange law within the year, bringing stablecoins under regulation as payment instruments

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