The Bank of Korea plans to draft an amendment to the Foreign Exchange Transactions Act with the government before year-end that would regulate stablecoins as a means of payment, according to an October 22 report to the National Assembly's annual audit.
The proposed amendment would classify stablecoins under the same cross-border transaction reporting requirements as traditional wire transfers. The central bank said it is consulting with the government on measures to regulate cross-border virtual asset transactions and plans to build a monitoring system based on foreign exchange network reporting.
The BOK identified settlement outside the banking system, mixers, and regulatory gaps around personal wallets as factors that facilitate illegal transactions.
The stablecoin regulation work proceeds alongside the Digital Asset Basic Act, a licensing and stablecoin-issuance framework included in the government's 2026 growth strategy. 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.
Crypto Tax Implementation Faces Pressure
South Korea's crypto income tax is scheduled to take effect January 1, 2027, after three previous postponements. Lawmakers have questioned implementing taxation on a market before the law defining it is passed.
The issue has prompted political shifts. Democratic Party leader Kim Min-seok called Thursday for a "thorough final review," marking a departure from the party's previous insistence on the 2027 timeline.
Two public petitions—one to repeal the tax and another to defer it for two years—each surpassed the 50,000 signatures required to trigger a legislative review. The National Tax Service plans to finalize its draft tax notice by October 30.
