South Korea's ruling government is advancing legislation to classify stablecoins as foreign exchange payment instruments under existing financial laws. The proposal aims to reshape cross-border crypto payments and tighten oversight of digital asset transactions.
The bill would merge stablecoins into the Foreign Exchange Transaction Act, subjecting related businesses to financial authority regulation without requiring separate licenses. It mirrors global efforts to regulate stablecoins through traditional financial frameworks.
Key provisions include prohibiting stablecoin issuers from offering interest to holders and developing technical standards for blockchain interoperability. Certain cross-border payments for goods and services may qualify for reporting exemptions.
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