Key Insights:
- The latest stablecoin news showed that South Korean regulators plan to exclude USDT and USDC from corporate crypto investment guidelines.
- Decision is tied to foreign exchange laws that do not yet recognize stablecoins for cross-border payments.
- Some companies reportedly use personal wallets or overseas exchanges to access stablecoins for trade.
South Korea Stablecoin news are taking shape as financial regulators prepare new guidelines for listed companies entering the crypto market.
Authorities are leaning toward excluding dollar-pegged stablecoins like USDT and USDC, citing conflicts with the country’s current foreign exchange laws.
Stablecoin News: USDC & USDT Likely Excluded from Corporate Investment Rules
South Korea Stablecoin Rules are becoming clearer as regulators finalize guidelines that will allow listed companies to invest in digital assets.
However, dollar-pegged stablecoins such as USDT and USDC are expected to be left outside the permitted investment scope.
According to a report by Herald Economy, the Financial Services Commission is preparing what it calls “Corporate Virtual Currency Trading Guidelines.”
As per the stablecoin news, these rules will set standards for listed firms and registered professional investment companies that want to trade digital assets for financial or investment purposes.
The guidelines are part of a broader shift in South Korea’s digital asset market. For years, trading activity has been dominated by retail investors.
Authorities now want to create a structured path for corporations to participate in the market.
Even so, regulators appear cautious. Officials believe stablecoins should not be included in the first phase of the guidelines.
Their concern is that allowing corporations to invest heavily in stablecoins at the early stage of the market could lead to uncontrolled financial activity.
Legal Conflict With Foreign Exchange Law Behind The Decision
The stablecoin news hints that the main reason behind the exclusion lies in South Korea’s current legal framework.
Under the Foreign Exchange Transactions Act, stablecoins are not recognized as an official method for cross-border payments.
The law requires that foreign payment instruments must be handled through designated foreign exchange banks.
Since stablecoin is not classified as legitimate external payment tool, regulators believe allowing companies to invest in them would contradict the law.
Notably, lawmakers have already started discussing possible changes. In October last year, a proposal was submitted to the National Assembly to amend the Foreign Exchange Transactions Act.
The amendment includes provisions that could recognize stablecoin as forms of payment.
However, the proposal is still under review. Until the law changes, financial authorities appear unwilling to formally include stablecoins in corporate trading guidelines.
Officials are also working on the Digital Asset Basic Act, often referred to as Phase 2 legislation. Once that law is finalized, the government plans to release detailed rules covering how corporations can trade digital assets.
An industry source familiar with the discussions said the working-level task force responsible for the guidelines has already completed most of its work.
Final decisions will likely depend on how the broader legislation moves through the National Assembly.
Companies Already Using USDT and USDC Stablecoins Through Indirect Channels
Even if stablecoins are excluded from the official guidelines, companies will still find ways to access them.
As per the stablecoin news, South Korean corporations cannot open digital asset trading accounts directly.
This restriction prevents firms from using stablecoins as official trade settlement tools. However, some companies have reportedly found indirect ways to use them.
In certain cases, firms rely on personal crypto wallets or overseas exchange accounts to handle payments connected to international trade.
Industry sources say this practice has become more common among companies that deal heavily with foreign partners.
Stablecoins offer fast settlement and often lower transaction costs compared to traditional cross-border transfers.
Notably, some listed firms have also asked regulators to consider allowing stablecoins within the guidelines.
They argue that tokens such as USDT and USDC reflect real-time exchange rates and can serve as a useful tool for currency hedging.
Still, under the current South Korea stablecoin rules being drafted, regulators seem determined to keep stablecoins outside the official corporate investment framework, at least for now.
The final outcome may depend on how quickly lawmakers update the country’s foreign exchange laws.