Quick answer: The Bank of Korea says it will draft an amendment to South Korea’s Foreign Exchange Transactions Act before the end of 2026 so that stablecoins are regulated as a “means of payment.” That would pull stablecoins into the country’s cross-border reporting rules. It is a plan, not yet a bill, and it does not make stablecoins legal tender. Meanwhile, a separate crypto market bill and a 2027 crypto tax are still being fought over.
South Korea is working on stablecoin regulation from several directions at once. The central bank wants stablecoins covered by forex law, the financial regulator is finishing a wider digital asset bill, and lawmakers are arguing about whether crypto gains should be taxed from January 2027. Here is what is happening and why it matters.
Key takeaways
- The Bank of Korea told lawmakers it will draft a Foreign Exchange Transactions Act amendment with the government this year.
- The change would regulate stablecoins as a means of payment, meaning their cross-border movement would have to be reported.
- It does not make stablecoins legal tender. It is about oversight of cross-border flows.
- The wider Digital Asset Basic Act is a separate bill, and the Financial Services Commission says talks are in the final stage.
- The crypto income tax is scheduled to start on January 1, 2027, and critics say the market should be defined by law first.
What does the Bank of Korea want to change?
The Bank of Korea wants stablecoins written into South Korea’s forex law. It plans to draft an amendment to the Foreign Exchange Transactions Act with the government before year-end, so stablecoins count as a means of payment.
According to reports on the bank’s written submission to the National Assembly’s annual audit, the bank is also building a monitoring system based on foreign exchange network reporting. The bank has raised concerns about crypto mixers and unhosted wallets, which can make transactions harder to trace.
Until a law exists, the bank says it will work with ministries to limit transactions that exploit the gap. Details on scope and implementation are still being developed.
What does “means of payment” actually mean?
In Korean forex law, a means of payment is an instrument whose cross-border movement must be reported. Putting stablecoins in that category brings them under the same reporting rules as bank wires.
This is easy to misread. The phrase does not mean stablecoins become official money or legal tender. It means more oversight. Dollar stablecoins used by people in Korea would fall into the same regime that applies to traditional cross-border transfers, which are tied to the country’s capital controls.
Right now, stablecoins sit in a gray area. Because the forex law does not list them as a means of payment, authorities worry they can be used for cross-border currency and capital transfers without the required reporting. That raises the risk of money laundering, tax evasion, and foreign exchange violations. Earlier this year, Korean authorities pursued a case involving an alleged $107 million crypto-linked laundering operation that moved funds through overseas accounts to bypass foreign exchange controls.
How is this different from the Digital Asset Basic Act?
The forex change is separate. The Digital Asset Basic Act is the wider crypto bill meant to set rules for the market, including areas such as exchange licensing and stablecoin issuers.
Financial Services Commission chairman Lee Eog-weon told lawmakers on Thursday that consultations on the bill are in their final stage and that it will follow as soon as possible. The Bank of Korea’s plan is not a replacement for it. In effect, Korea is moving on stablecoins through its existing exchange-control law first, because the purpose-built crypto law has not passed yet.
That contrasts with the United States, where stablecoins are handled mainly through banking and payments law.
What is the crypto tax fight about?
South Korea’s crypto income tax is due to take effect on January 1, 2027, after three postponements. Lawmakers are questioning whether a market should be taxed before the law that defines it exists.
Two petitions, one to repeal the tax and one to delay it by two years, have each passed 50,000 signatures. The party that previously backed a 2027 start is now facing questions from its own side. Lee said the tax should take “various circumstances” into full consideration.
The National Tax Service has not changed course. It plans to finalize its draft tax notice by Friday, October 30.
What does this mean for crypto users and exchanges in Korea?
Expect more reporting and closer monitoring of stablecoin transfers across borders, but no change to stablecoins’ legal status.
- Cross-border transfers: moving stablecoins in or out of Korea could face the same reporting expectations as bank wires.
- Exchanges and service providers: firms may need systems to report cross-border flows, and unhosted wallet and mixer activity may draw attention.
- Investors: the tax date could still move, so watch the tax service’s October 30 notice and any National Assembly action.
These are expectations based on the stated direction, not final rules. The amendment has not been written yet.
What happens next?
Watch four dates: the October 30 draft tax notice, the Financial Services Commission’s crypto bill, the Bank of Korea’s year-end forex draft, and the January 1, 2027 tax start.
The big question is sequencing. Korea may tax crypto and tighten stablecoin oversight before the law that defines and licenses the market is in place. How lawmakers resolve that gap will shape how the country treats stablecoins, exchanges and investors for years.
Frequently asked questions
What is the Bank of Korea planning for stablecoins?
The Bank of Korea told lawmakers it will draft an amendment to the Foreign Exchange Transactions Act with the government before the end of 2026. The amendment would regulate stablecoins as a means of payment. It is a plan to write a bill, not a bill itself.
What does means of payment mean in Korean forex law?
Under the Foreign Exchange Transactions Act, a means of payment is an instrument whose cross-border movement must be reported. Classifying stablecoins this way brings them into the same reporting system as bank wires. It does not make stablecoins legal tender.
Will stablecoins become legal tender in South Korea?
No. Reports say the forex law change is about tighter oversight of cross-border flows, not about giving stablecoins legal-tender status.
When does South Korea’s crypto tax start?
The crypto income tax is scheduled to take effect on January 1, 2027, after three postponements. Two petitions, one to repeal the tax and one to delay it by two years, have each passed 50,000 signatures. The National Tax Service plans to finalize its draft tax notice by Friday, October 30.
What is the Digital Asset Basic Act?
It is the planned law meant to define and regulate South Korea’s crypto market, including areas such as exchange licensing and stablecoin issuer rules. Financial Services Commission chairman Lee Eog-weon told lawmakers that consultations are in their final stage and the bill will follow as soon as possible. The Bank of Korea’s forex plan is separate from it.
Why does the Bank of Korea want stablecoins in forex law?
Authorities worry that dollar stablecoins can move money across borders without the reporting that forex law requires, which raises the risk of money laundering, tax evasion and foreign exchange violations. Until a law exists, the bank says it will work with ministries to limit transactions that exploit the gap.
This article is a news summary for information only and is not legal, tax or investment advice. Details come from press reports and official statements as of October 25, 2026 and may change as the legislation develops. For official guidance, check the Bank of Korea, the Financial Services Commission and the National Tax Service.