South Korea Considers Ban on Corporate Investment in Stablecoins, Raising Compliance Concerns

The South Korean Financial Services Commission (FSC) is drafting new regulations targeting corporate cryptocurrency transactions, planning to explicitly prohibit companies from investing in dollar-pegged stablecoins such as USDT and USDC. This move aims to curb the financial risks that unregulated digital assets may pose, but it also raises concerns among businesses about cross-border payment efficiency and exchange rate management.

Previously, South Korea proposed a revised bill in October last year to classify stablecoins as payment instruments, but the proposal has not yet passed the legislative process. As the regulatory framework is not yet fully established, some companies may turn to using personal wallets or trading stablecoins through overseas platforms such as Coinbase OTC to circumvent domestic restrictions.

Companies generally point out that stablecoins have irreplaceable advantages in real-time exchange rate settlement, reducing cross-border transaction costs, and hedging foreign exchange risks. A comprehensive ban would affect the flexibility and cost structure of their international business operations. An industry insider stated that the regulatory plan at the corporate level has been basically finalized, but the final implementation still depends on the progress of the second phase of legislation of the Digital Asset Basic Act. It is worth noting that international attitudes towards stablecoins are diverging. U.S. Treasury officials have stated that stablecoins under a compliant framework can become a stable pillar of the financial system. The Bank of England recommends a personal holding limit of £20,000 and is studying the feasibility of a pound-pegged stablecoin to enhance payment system security. Although South Korea plans to prohibit companies from directly investing in stablecoins, individual holdings and transactions through overseas platforms are still legal. As the Digital Asset Basic Act is gradually implemented, companies will face a more complex trade-off between compliance and efficiency. In the future, how to strike a balance between strict regulation and functional needs will be a key challenge for the digital transformation of South Korean companies.