South Korea’s administration and the Bank of Korea intend to modify the Foreign Exchange Transactions Act over the course of this year in order to govern stablecoins as official payment tools, as reported by domestic media source Digital Asset.
The Bank of Korea announced that it is collaborating with the state administration on policies aimed at supervising cross-border cryptocurrency transfers.
The central monetary authority declared that it plans to jointly draft legislation with the government before the end of the year, updating the foreign exchange statute to classify stablecoins as a payment method, alongside implementing an oversight structure for digital currencies.
This initiative follows the National Assembly audit from the previous year, during which legislators urged the Bank of Korea to upgrade domestic payment frameworks to meet international benchmarks—such as lengthening the operating hours for high-value payment networks until 8 p.m.—and to set up safeguards against money laundering threats tied to the arrival of international cryptocurrency exchanges.
Framework in progress
Furthermore, the Bank of Korea noted that it will concentrate on creating a global cooperative network to fight unauthorized digital asset transfers. The central institution clarified that crypto operations permit cross-border movements bypassing conventional banking entities, whereas mechanisms like mixers and self-hosted wallets boost privacy, thereby simplifying unlawful operations.
Simultaneously, South Korea is actively formulating the Digital Asset Basic Act, which aims to create a thorough regulatory structure for cryptocurrencies, encompassing exchange authorization systems and guidelines for stablecoin production. Financial Services Commission Chairman Lee Eog-weon mentioned on Thursday during a legislative hearing that talks regarding the legislation were close to finalization and that the administration would strive to present it promptly.
The central bank stated it will maintain dialogues with pertinent government bodies to reduce regulatory gaps that might emerge from temporary legislative delays while the Digital Asset Basic Act is being finalized.
Originally published at https://www.theblock.co/news/regulation/2026-10-23-south-korea-stablecoins-payment-instruments-424028.
