Stablecoins Face Exclusion from Corporate Investment in South Korea

Highlights:

• South Korea plans to regulate the use of stablecoins in businesses.
• Legal contradictions are leading to the exclusion of stablecoins in investments.
• Stablecoins face legal hurdles under the Foreign Exchange Act in South Korea.

The financial authorities in South Korea are drafting new regulations on corporate investment in cryptocurrencies. The regulators in the country are already likely to exclude such stablecoins as USDT and USDC from the list of acceptable digital assets. The decision is based on legal issues regarding the recognition of these digital assets under the Foreign Exchange Transactions Act, as per the local report.

In the latest draft guidelines, stablecoins are excluded as an investment option of listed companies. This move is part of the broader initiatives by South Korea to regulate the emerging market of digital assets responsibly. Financial regulators focus on restricting risky corporate investments while setting clear guidelines for trading digital assets for investment and financial purposes.

According to Herald Economics, South Korea's financial regulators are inclined to exclude dollar-pegged stablecoins such as USDT and USDC from the list of permissible investments when drafting guidelines for listed companies to invest in cryptocurrencies. The regulators believe…

— Wu Blockchain (@WuBlockchain) March 7, 2026

Stablecoins Excluded from Corporate Crypto Guidelines

Authorities in South Korea believe that allowing stablecoins in corporate investment may conflict with the current legal frameworks. Stablecoins, such as USDT and USDC, are not considered legal payment methods under the Foreign Exchange Transactions Act. This act provides that all international payments should be handled by approved foreign exchange banks, which excludes stablecoins.

The inclusion of stablecoins was anticipated by companies, especially those conducting international trade, because of convenience. Stablecoins facilitate quick and relatively low cross-border payments and may be utilized as a hedge against volatile currency exchanges. Regardless of these advantages, South Korean regulators are careful about allowing stablecoins for corporate investment portfolios.

Legal Challenges Surrounding Stablecoins

The legal position of the stablecoins in South Korea remains a major concern. Stablecoins are widely used in international transactions and have recently grown to more than $300 in market value. However, they are not accepted as an official payment for trade in the country. This loophole presents a contradiction in the context of stablecoins being for corporate use. This is because it would allow companies to evade the rules of established foreign exchange indirectly.

The Foreign Exchange Transactions Act was partially amended last year to accept these assets as a valid means of payment. However, the amendment remains under review in the National Assembly, with its future remaining uncertain. The financial authorities in South Korea are focusing on stability and ensuring that companies do not make risky investments in digital assets.

Although the trading of these digital assets is not covered by corporate investment rules, corporations may engage in trading with them. They may use personal wallets such as MetaMask or use foreign exchanges such as Coinbase OTC. However, this trading is conducted outside the official corporate regulations, and it is legally unclear.

South Korea’s Cautious Crypto Approach

In recent years, South Korea has been gradually expanding its regulation over cryptocurrencies. Crypto ETFs are planned to be approved in the country this year. Additionally, authorities are currently preparing a more comprehensive legislative framework under the Digital Asset Basic Act. The goal is to allow business investment in chosen cryptocurrencies while maintaining stablecoins under control to mitigate the possible market disruptions.

South Korea said in its 2026 Economic Growth Strategy that it plans to allow spot digital asset ETFs, including spot Bitcoin ETFs, this year, while the Financial Services Commission (FSC) accelerates phase-two digital asset legislation. The government cited active spot Bitcoin…

— Wu Blockchain (@WuBlockchain) January 9, 2026

The governmental caution is meant to balance the promotion of innovation and control of financial security. By limiting investment in stablecoins, South Korea will control the risks of an unregulated market, particularly in the early stages of adopting digital assets.

Meanwhile, stablecoin regulation has also been a hot topic worldwide. Last year, the GENIUS Act was signed in the United States to provide a structured framework for stablecoins. However, another bill, the CLARITY ACT, has stalled after the dispute over stablecoin yields between the banking groups and the crypto industry.