South Korea Wants Stablecoins Written Into Its Forex Law Within The Year

The Bank of Korea plans to prepare the bill jointly with the government before the year ends. Unhosted wallets and mixers are already on its radar. South Korea is moving on two tracks at once. The first is fast and narrow. The government and the Bank of Korea plan to revise the Foreign Exchange Transactions Act this year, so that stablecoins are regulated as payment instruments. The second is slow and broad: the Digital Asset Basic Act, a comprehensive framework that the government is still developing. The forex amendment is how the central bank intends to act before that larger law arrives. A payment instrument, by statute The Bank of Korea said it is coordinating with the government on measures to regulate cross-border transactions in digital assets. Its stated plan has two parts: A bill, prepared jointly with the government within this year, amending the forex law to regulate stablecoins as a means of payment A monitoring framework for virtual assets, prepared alongside that bill Note the vehicle. The change runs through the forex law, ahead of the dedicated digital asset law still in development. The audit that set this in motion The plan answers last year's National Assembly audit. During that audit, lawmakers asked the Bank of Korea to bring local payment infrastructure up to global standards. Two requests are on the record: Extending the operating hours of large-value payment systems to 8 p.m. Establishing measures to prevent money laundering risks linked to the entry of global crypto exchanges Unhosted wallets, in the central bank's own words The Bank of Korea also said it would focus on building an international cooperation framework to combat illegal digital asset transactions. Its reasoning is worth reading closely. In the central bank's view, these transactions enable cross-border transfers outside traditional financial institutions. It added that tools like mixers and unhosted wallets increase anonymity, which makes illicit activities easier to carry out. This is the central bank's stated view, not yet a rule. But it shows which tools the institution drafting the forex amendment is watching. For anyone holding their own keys, that is the part of this story to follow as the bill takes shape. The bigger bill is almost ready The Digital Asset Basic Act seeks to establish a comprehensive framework for crypto, including: Licensing regimes for exchanges Rules for stablecoin issuance On Thursday, at a hearing, Lee Eog-weon, chairman of the Financial Services Commission, said discussions on the bill were nearing completion. He said the government will work to introduce it as soon as possible. Until then, there is a gap. The Bank of Korea said it will continue consulting with relevant ministries to minimize regulatory arbitrage that could arise from temporary legislative gaps while the Digital Asset Basic Act takes shape. What we know so far Who: the South Korean government and the Bank of Korea What: an amendment to the Foreign Exchange Transactions Act regulating stablecoins as payment instruments, plus a monitoring framework for virtual assets When: a bill to be jointly prepared within this year Why: last year's National Assembly audit, which asked for 8 p.m. operating hours for large-value payment systems and anti-money laundering measures tied to global crypto exchanges Next: the Digital Asset Basic Act, with exchange licensing and stablecoin issuance rules, which the Financial Services Commission chairman says is nearing completion The big picture South Korea is not waiting for its comprehensive law to define stablecoins. It is reaching for the statute it already has, the forex law, and framing stablecoins as a payment and cross-border issue first. The pattern is clear in the central bank's own words. Cross-border flows outside traditional institutions come first, and mixers and unhosted wallets are named in the same breath as illicit activity. The Digital Asset Basic Act will set the broad rules. The forex amendment shows where the pressure is now.