South Korea plans to amend the law to "subject stablecoins to forex control," treating StableCoin for the first time as a legal currency.

The South Korean National Assembly will review legislation on October 28, planning to include stablecoins in the Foreign Exchange Transaction Act, granting them the same status as fiat currencies and setting a new precedent for global regulation. (Background: Coinbase partners with Citibank to promote stablecoin payments, and collaborates with Apollo to launch StableCoin collateralized loans) (Supplementary background: The world’s first yen-pegged stablecoin JPYC is online! Approved by Japan’s Financial Services Agency, backed by Japanese government bonds, supporting multi-chain deployment.) The South Korean National Assembly will vote on October 28 to officially write stablecoins into the Foreign Exchange Transaction Act. If the bill passes, tokens pegged to the US dollar or Korean won will gain the same legal status as cash, meaning exchanges, banks, and general users must handle related fund flows in accordance with foreign exchange reporting regulations. For Seoul, which has always been at the forefront of the crypto wave, this is both a response to market chaos and a way to seize the initiative in the global regulatory race. The past gray area must now be brought to light. Stablecoins are superficially pegged to fiat currencies 1:1, but have long been navigating the gaps in financial regulations around the world. According to reports from the United News, US dollar stablecoins are already circulating in South Korea, and the Bank of Korea (BOK) has repeatedly raised alarms, worried that funds could “exit without tickets” via tokens, impacting the stability of the foreign exchange market. The central bank recently pointed out that if management is not implemented early, cross-border funds may bypass current reporting processes, increasing the risks of money laundering and tax evasion. This warning prompted the ruling party's National Power member Park Sung-hoon to propose legislation, attempting to replace the past practice of merely viewing stablecoins as “virtual assets” with a framework of foreign exchange management. The bank-led model addresses regulatory gaps. The key points of the draft are: 1. Clearly defining stablecoins as “payment instruments” under the Foreign Exchange Transaction Act; 2. Requiring issuers to hold 100% high liquidity reserves; 3. Prohibiting interest payments to holders to avoid direct competition with deposits. In practical terms, the BOK advocates that commercial banks assume the roles of issuance and custody, thereby utilizing existing KYC and AML systems to reduce the risks associated with anonymous transactions. Park Sung-hoon emphasized in the proposal: “Virtual assets linked to domestic or foreign currencies and available for payment by an unspecified majority should be included in the payment tools category of the Foreign Exchange Transaction Act.” If the bill passes, bringing stablecoins directly into the foreign exchange regulatory sandbox effectively links banks, regulatory agencies, and on-chain data into a single funding monitoring chain. Impact: Compliance costs rise, transparency upgrades. For South Korean crypto operators, management means that reserve funds, capital adequacy, and information disclosure requirements will significantly increase, inevitably raising operational costs in the short term. However, a clear framework also reduces legal uncertainty, likely attracting large banks and payment providers on board, thereby providing users with higher trustworthiness. On the government level, extending foreign exchange regulatory authority to on-chain assets helps control capital outflow and effectively combat illegal financial activities. Currently, the Ministry of Planning and Finance, Financial Services Commission, and BOK have begun discussions on the technical integration details, demonstrating the regulatory agencies' determination to adjust their pace in tandem. Looking internationally, South Korea's “bank-led + full reserve” model may also become a template for other countries seeking stablecoin regulation. Before the vote: From bubble to watershed of the system. South Korea once surged to the top three in global trading volume during the 2017 “token craze”; now, choosing to reshape the stablecoin order using the framework of foreign exchange law highlights the government's orientation towards balancing risk control and innovative development. This legislation not only concerns the local market but also provides a “replicable and verifiable” path for how digital assets can be embedded in traditional finance. South Korea's experience may become an important reference for the adjustment of regulatory coordinates in the US, Europe, and Asia. Whether the bill can smoothly pass on October 28 will be a key watershed for stablecoins transitioning from market experiments to institutional integration. Related reports: Stablecoin-specific chain Stable pre-sale exposes rat trading! Bitfinex allegedly made an early payment of 500 million dollars, with only 274 addresses successfully participating. Taiwanese stablecoin infrastructure company Odin is going public in the US! Directly listed on Nasdaq on 10/16, stock code OWLS. People's Bank of China governor Pan Gongsheng: insists on cracking down on cryptocurrencies! Stablecoins are still in the early stages of development, pushing for the development of the digital yuan. <South Korea plans to legislate “stablecoins included in foreign exchange controls”, stablecoins are treated as fiat currency for the first time> This article was first published in BlockTempo, the most influential blockchain news media.