According to The Block, South Korea intends to amend its foreign exchange law so that stablecoins can be treated as payment instruments under regulatory oversight. The government is currently developing the Digital Asset Basic Act, which aims to create a comprehensive framework for digital assets in the country. Under this process, stablecoins—cryptocurrencies pegged to a reserve asset such as the U.S. dollar or local currency—will be brought within the scope of payment-related regulations. This adjustment would mean that entities issuing or operating stablecoins within South Korea would need to comply with rules applicable to other payment providers, including requirements related to licensing, transparency, and consumer protection. The move reflects part of an ongoing effort by authorities to clarify regulatory boundaries for various forms of digital assets. No details on timing, scope of implementation, or specific regulatory thresholds were provided in the report. The amendment would apply to stablecoins used within South Korea’s domestic payment ecosystem.
