South Korea is moving to allow corporate cryptocurrency investments but plans to exclude stablecoins such as USDT and USDC. The nation's financial watchdog cites conflicts with existing foreign exchange laws, which do not recognize these digital assets as official payment instruments. Regulators are also concerned about early-stage market risks and potential circumvention of the country's foreign exchange control framework.
Currently, South Korea's Foreign Exchange Transactions Act mandates all international transactions occur through licensed foreign exchange banks. Until a proposed amendment classifying stablecoins as payment instruments is approved, their use by corporations remains restricted. This development comes as South Korea prepares to welcome institutional players into its crypto market, a space historically dominated by retail investors, once the Digital Asset Basic Act is finalized. Companies may soon be able to hold assets like Bitcoin and Ethereum on their balance sheets, mirroring practices in Western markets.
This contrasts with the U.S., where policymakers are working on a unified framework for digital asset markets, although legislative progress faces hurdles.