South Korea · The Block
South Korea to amend forex law to regulate stablecoins as payment instruments: report
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South Korea’s government and the Bank of Korea plan to revise the Foreign Exchange Transactions Act this year to regulate stablecoins as payment instruments, according to local news outlet Digital Asset.
Key facts
- South Korea’s government and the Bank of Korea plan to revise the Foreign Exchange Transactions Act this year to regulate stablecoins as payment instruments, according to local news outlet Digital
- The Bank of Korea said it is coordinating with the government on measures to regulate cross-border transactions in digital assets
- The Bank of Korea also stated it would focus on building an international cooperation framework to combat illegal digital asset transactions
- Meanwhile, South Korea is currently developing the Digital Asset Basic Act, which seeks to establish a comprehensive framework for crypto, including licensing regimes for exchanges and rules
Summary
The Bank of Korea said it is coordinating with the government on measures to regulate cross-border transactions in digital assets. The central bank stated that it intends to jointly prepare a bill with the government within this year that amends the forex law to regulate stablecoins as a means of payment, alongside a monitoring framework for virtual assets. This came in response to last year's National Assembly audit, where the lawmakers asked the Bank of Korea to expand local payment infrastructure to global standards, such as extending the operating hours of large-value payment systems to 8 p.m., and establishing measures to prevent money laundering risks linked to the entry of global crypto exchanges.