Why this matters

South Korea is not proposing to make stablecoins legal tender. It is proposing to put them under the same cross-border reporting rules that already apply to wire transfers, a distinction that separates Thursday’s announcement from a simple nod to crypto payments.

The Bank of Korea told the National Assembly it is working with the government to amend the Foreign Exchange Transactions Act (FETA) this year so that stablecoins are formally classified as a “means of payment,” according to The Block. That term carries a specific legal meaning in Korean forex law: it flags an instrument whose cross-border movement must be reported, not one that can be spent as currency, as Bitcoin Magazine points out.

Key Takeaways

  • The Bank of Korea and the government plan to jointly draft a FETA amendment this year classifying stablecoins as a payment instrument, alongside a monitoring framework for virtual-asset transactions, per The Block.
  • The push follows a prior National Assembly audit that asked the central bank to modernize payment infrastructure and address money-laundering risk from global exchanges entering the market.
  • A separate FETA amendment, effective December 3, 2026, already requires virtual-asset transfer businesses to register with the Ministry of Economy and Finance, with noncompliance punishable by up to three years in prison, according to Crypto Briefing.
  • The broader Digital Asset Basic Act, which would set licensing rules for exchanges and stablecoin issuance, is in its “final stage” of consultation, Financial Services Commission chairman Lee Eog-weon told lawmakers, with a National Assembly review planned for November 2026.
  • No draft bill text, named token, or passage date has been published for the stablecoin payment-instrument classification itself.

What the amendment would actually do

The Bank of Korea’s submission to the audit describes a plan to prepare legislation, not a finished bill. It said it intends to jointly prepare, with the government, a bill amending forex law to regulate stablecoins as a means of payment, alongside a monitoring system built on foreign exchange network reporting, per The Block.

Crypto Briefing frames the practical effect as putting dollar-pegged tokens in the same legal category as government-issued banknotes for forex purposes, aimed at three concerns: unregulated cross-border transactions, money laundering and tax evasion. Bitcoin Magazine cautions against reading more into it than that: “There is no draft text, no named token and no passage date,” the outlet wrote, arguing the amendment would subject dollar stablecoins to the same controls as an international wire, not grant them status as spendable currency domestically.

Korean outlet TokenPost adds a similar caveat, noting that it has not been confirmed whether stablecoin payments will be officially permitted or whether the amendment itself is finalized, and that the plan remains at the discussion stage, separate from other legislative steps already underway.

Two legislative tracks running in parallel

South Korea already has a related but distinct law in motion. A FETA amendment, promulgated June 2, 2026, and taking effect December 3, 2026, requires virtual-asset transfer businesses to register with the Ministry of Economy and Finance to monitor cross-border transfers, Crypto Briefing reported. Businesses that fail to register face up to three years in prison. TokenPost reported that the ministry opened an enforcement decree for that law to public comment from October 7 to October 26, 2026, covering the definition of virtual-asset transfer business, registration requirements and reporting duties.

The new stablecoin-as-payment-instrument classification is a separate plan layered on top of that framework, according to TokenPost, with its legal definitions, covered transactions and reporting procedures still unspecified.

The Bank of Korea’s broader motivation, per The Block, traces back to a National Assembly audit in which lawmakers asked the bank to bring local payment infrastructure up to global standards, including extending large-value payment system operating hours to 8 p.m., and to address money-laundering risks tied to global crypto exchanges entering the Korean market. The bank said crypto transactions enable cross-border transfers outside traditional financial institutions, while mixers and unhosted wallets increase anonymity, making illicit activity easier, a concern both The Block and Bitcoin Magazine report the bank raised directly with lawmakers.

The Digital Asset Basic Act is still the bigger piece

The stablecoin forex rules are only one part of South Korea’s regulatory build. The Digital Asset Basic Act is meant to establish a comprehensive framework for crypto, including a licensing regime for exchanges and rules for stablecoin issuance. FSC chairman Lee Eog-weon told lawmakers Thursday that discussions on the bill are nearing completion and that the government will introduce it as soon as possible, per The Block. Bitcoin Magazine, citing Bloomingbit, reported Lee used similar language, saying consultations are in their “final stage.”

Crypto Briefing reported that a National Assembly review of the act is planned for November 2026, and noted that South Korea currently has no specific licensing regime for stablecoin issuers. Policy discussions so far have centered on bank-fintech partnerships, covering who would be permitted to issue stablecoins and what capital requirements they would need to meet.

Until that law exists, the Bank of Korea said it will keep consulting with relevant ministries to minimize regulatory arbitrage that could arise from the gap between today’s rules and the eventual framework, per The Block.

What to Watch

The National Assembly’s review of the Digital Asset Basic Act is planned for November 2026, per Crypto Briefing. The enforcement decree tied to the existing virtual-asset transfer registration law closed for public comment on October 26, ahead of that law’s December 3 effective date, per TokenPost. Separately, Bitcoin Magazine reported that Korea’s crypto income tax is due to take effect January 1, 2027, after three prior postponements, with the National Tax Service planning to finalize its draft tax notice by October 30, 2026, a timeline lawmakers including Democratic Party leader Kim Min-seok have called for reviewing further. Whether the stablecoin forex amendment itself reaches draft-bill form before year-end, the timeline the Bank of Korea and government have set, remains the open question.

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