South Korean Financial Authorities Plan to Ban Corporate Investment in Stablecoins

Odaily According to reports, the "Corporate Virtual Currency Trading Guidelines" currently being formulated by the South Korean Financial Services Commission will exclude stablecoins from the scope of permitted investments. These guidelines aim to allow listed corporations and registered professional investment entities to engage in digital asset trading for investment or financial purposes. To prevent disorderly investment in the early stages of the market, authorities have decided to exclude USD stablecoins such as USDT and USDC from the permitted scope.

One reason for the exclusion of stablecoins is that the current South Korean Foreign Exchange Transactions Act does not recognize stablecoins as a means of external payment. Including stablecoins within the scope of permitted investments would conflict with the existing legal framework, effectively allowing companies to use stablecoins for commercial purposes such as trade. Currently, the South Korean National Assembly is reviewing an amendment to the Foreign Exchange Transactions Act that proposes to recognize stablecoins as a payment method. This bill was introduced in October last year.

It is reported that some listed companies with a high proportion of trade had requested that stablecoins be included in the permitted scope to facilitate foreign exchange hedging using stablecoins. Even if excluded from the guidelines, companies can still trade stablecoins through personal wallets or overseas exchanges. Industry insiders revealed that the relevant working group has completed its tasks, but the release timing of the guidelines is linked to the legislative progress of the Digital Asset Basic Act.