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Bank of Korea plans to bring stablecoins under its foreign exchange law as a payment instrument
Summary
South Korea plans to amend its foreign exchange law to regulate stablecoins as a means of payment, The Block and Bitcoin Magazine reported on Friday, citing a Bank of Korea submission to lawmakers first reported by Korean outlet Digital Asset.
Bitcoin Magazine said the central bank's Oct. 22 report to the National Assembly's annual audit says it will draft the amendment to the Foreign Exchange Transactions Act with the government before the end of the year, while building a monitoring system for cross-border virtual asset transactions.
There is no draft text or passage date yet, and Bitcoin Magazine noted that 'means of payment' is a defined term in Korean forex law for instruments whose cross-border movement must be reported, pointing to tighter controls rather than legal-tender status.
The work runs alongside the Digital Asset Basic Act, the broader crypto framework South Korea is developing, The Block said.
Key facts
- The Bank of Korea cited settlement outside the banking system, mixers and regulatory gaps around personal wallets as factors that ease illegal transactions, Bitcoin Magazine reported.
- Financial Services Commission chairman Lee Eog-weon told lawmakers Thursday that consultations on the Digital Asset Basic Act are in their final stage, Bitcoin Magazine said, citing Bloomingbit.
- Korea's crypto income tax is due to take effect Jan. 1, 2027 after three postponements, and two petitions to repeal or defer it each passed the 50,000 signatures that force a legislative review, per Bitcoin Magazine.