Government and Bank of Korea to Amend Foreign Exchange Transaction Act for Stablecoin Regulation

The government and the Bank of Korea will push for amendments to the Foreign Exchange Transaction Act to regulate stablecoins as a means of payment this year. According to a report on the status of government audits on the 22nd, the Bank of Korea stated that it is discussing measures to regulate cross-border transactions of virtual assets in collaboration with the government as part of the corrective actions required for the 2025 government audit. The Bank is preparing to establish a monitoring system for virtual assets, including reporting through the foreign exchange computer network, and plans to prepare a bill to amend the Foreign Exchange Transaction Act to regulate stablecoins as a means of payment within this year. This is part of the action plan requested by the National Assembly during last year's government audit for the globalization of payment infrastructure and the establishment of a regulatory framework for virtual assets. The National Assembly has demanded the extension of the operating hours of the large-value payment system to 8 PM and the establishment of measures to prevent money laundering risks associated with the entry of global digital asset exchanges. The Bank of Korea has also presented the establishment of an international cooperation system to respond to illegal transactions using digital assets as a task. Additionally, the government plans to address potential regulatory circumvention transactions that may occur while digital asset-related legislation is being processed with relevant ministries.

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