Bank of Korea plans to regulate stablecoins under forex law

Bank of Korea to draft stablecoin rules

The Bank of Korea (BOK) has announced plans to draft an amendment to the Foreign Exchange Transactions Act to regulate stablecoins. Stablecoins are a type of digital currency designed to maintain a stable value, usually pegged to assets like the US dollar. The central bank stated in a report submitted to lawmakers on October 22 that it will work with the government to finalize these measures by the end of 2026.

The amendment would treat stablecoins as a means of payment under existing foreign exchange rules. This means cross-border movements of these digital assets would require reporting and monitoring, similar to traditional bank wire transfers. The BOK identified gaps in the current system, such as the use of mixers and personal wallets outside the banking system, which it claims can facilitate illegal transactions.

Key legislative and tax developments

• The BOK is currently consulting with the government on how to monitor cross-border virtual asset transactions.
• The plan is a proposal to draft a bill; no official text or specific token names have been released yet.
• This forex work is happening alongside the Digital Asset Basic Act, which provides a framework for licensing crypto exchanges and issuing stablecoins.
• Financial Services Commission chairman Lee Eog-weon reported that consultations for the Digital Asset Basic Act are in their final stage.

Severed tie between crypto tax and market definition

Korea’s crypto income tax is scheduled to take effect on January 1, 2027. This date has been postponed three times previously. Lawmakers are currently debating whether it is appropriate to implement the tax before the law that defines the crypto market is fully passed. Two petitions, one requesting the tax be repealed and another asking for a two-year delay, have each collected over 50,000 signatures, forcing a legislative review. Despite these calls for delay, the National Tax Service plans to finalize its draft tax notice by October 30.

What is confirmed and what remains unclear

It is confirmed that the BOK intends to draft an amendment to the Foreign Exchange Transactions Act this year. It is also confirmed that the National Tax Service maintains its plan to finalize the tax notice by the end of October. What remains unclear is the exact text of the proposed forex amendment and whether the government will alter the timeline for the crypto income tax in response to the public petitions and legislative delays.

Impact on Korean users

This move indicates a shift toward tighter cross-border controls on digital assets rather than recognizing them as legal tender for everyday purchases. For individuals in Korea who hold their own cryptocurrency keys (self-custody), this tighter forex net may reinforce the country's capital controls. These controls have historically contributed to price differences, often called the kimchi premium, between Korean and global markets.

News sources

• Bitcoin Magazine
• Digital Asset
• Bloomingbit
• The Block
• Yonhap News