South Korea plans forex law changes for stablecoin payments

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South Korea stablecoin regulation

Highlights

South Korea and the Bank of Korea plan to revise the Foreign Exchange Transactions Act within 2024 to regulate stablecoins as payment instruments and monitor digital asset flows.
The Bank of Korea intends to establish an international cooperation framework to address illicit digital asset activity enabled by cross-border crypto transfers and anonymizing tools.
Discussions on the Digital Asset Basic Act, which will set licensing and stablecoin issuance rules, are close to completion and aimed for rapid introduction according to the Financial Services Commission.

Planned law changes and regulatory scope

As reported by The Block, citing Digital Asset, South Korea’s government and the Bank of Korea plan to revise the Foreign Exchange Transactions Act within this year to regulate stablecoins as payment instruments and strengthen oversight of cross-border digital asset flows.

The Bank of Korea says it is coordinating with the government on measures covering international transactions in digital assets. The central bank says it intends to jointly prepare a bill within this year that amends the forex law to treat stablecoins as a means of payment, alongside a monitoring framework for virtual assets.

The move follows last year’s National Assembly audit, when lawmakers asked the Bank of Korea to upgrade local payment infrastructure to global standards. Those requests include extending the operating hours of large-value payment systems to 8 p.m. and creating safeguards against money laundering risks tied to the arrival of global crypto exchanges.

Broader crypto framework and market impact

The Bank of Korea also says it will focus on building an international cooperation framework to combat illegal digital asset transactions. It says crypto transfers can move across borders outside traditional financial institutions, while tools such as mixers and unhosted wallets increase anonymity and make illicit activity easier to carry out.

At the same time, South Korea is developing the Digital Asset Basic Act, a wider legislative framework for crypto that includes licensing rules for exchanges and requirements for stablecoin issuance. Financial Services Commission Chairman Lee Eog-weon said Thursday during a hearing that discussions on the bill are nearing completion and that the government will work to introduce it as soon as possible.

The central bank says it will continue consulting with relevant ministries to reduce regulatory arbitrage that could emerge from temporary legislative gaps while the Digital Asset Basic Act takes shape. For the crypto sector, the parallel push suggests South Korea is moving toward tighter controls on payments, exchange activity and cross-border compliance under a more unified rulebook.

Malaysia’s government is tightening oversight of cross-border digital commerce by coordinating enforcement on the entry of foreign products and businesses to protect local SMEs and ensure fair competition. Our earlier article noted the planned e-Commerce Bill, inter-ministerial coordination measures, and initiatives like the “Jom Beli Produk Malaysia” campaign aimed at strengthening the digital trade ecosystem and helping SMEs expand online, including into international markets.

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