REGULATION | South Korea Plans to Bring Stablecoins Under Foreign Exchange Law

South Korea’s government and central bank plan to amend the country’s Foreign Exchange Transactions Act in 2026 to regulate stablecoins as payment instruments as authorities seek tighter oversight of cross-border digital asset transactions. The Bank of Korea said it intends to work with the government on legislation and develop a monitoring framework for virtual asset transactions, including reporting through the country’s foreign exchange information network. REGULATION | South Korea Draft Bill to Classify Stablecoins as Foreign Exchange Payment Instruments The measures aim to address potential gaps in oversight as digital assets enable transfers that bypass traditional financial institutions.