Bank of Korea Plans Stablecoin Regulation via Forex Law Amendment

Key Facts

The Bank of Korea announced plans to draft an amendment to the Foreign Exchange Transactions Act this year to regulate stablecoins as a means of payment. Bitcoin Magazine reported that the proposed amendment aims to tighten cross-border controls rather than granting stablecoins legal tender status.

This move is part of the central bank's efforts to address regulatory gaps involving personal wallets and settlements occurring outside the traditional banking system. By integrating stablecoins into the forex law, the central bank intends to subject international transfers to the same reporting and oversight requirements currently governing the Korean financial system.