- South Korea may ban corporate stablecoin investments, forcing firms to rethink cross-border payment strategies.
- Companies value stablecoins for fast, low-cost payments but face strict regulations under new FSC guidelines.
- Legal limits clash with business needs, pushing firms to weigh operational convenience against compliance risks.
South Korea is restricting corporate investments in stablecoins, raising alarm among businesses reliant on digital currencies. The Financial Services Commission (FSC) is drafting corporate virtual currency trading guidelines that will likely exclude dollar-backed stablecoins such as USDT and USDC.
Authorities aim to prevent companies from making risky or careless financial decisions, especially in cross-border transactions. As a result, listed companies and professional investment firms will soon receive clearer instructions on permissible digital asset trades.
Currently, stablecoins face legal roadblocks under the Foreign Exchange Transactions Act, which does not recognize them as valid instruments for international payments.
As a result, the inclusion of stablecoins in corporate investment regulations will lead to legal conflicts. A partial amendment was presented last October, with an aim to categorize stablecoins as payment tools.
However, this amendment is still pending. Despite these regulations, corporations may opt to evade these regulations by using personal wallets or trading through overseas platforms like Coinbase OTC.
Regulatory Challenges and Corporate Concerns
FSC also stresses that “unregulated” stablecoins can lead to reckless financial actions. However, organizations claim that banning stablecoins can complicate foreign currencies. They mention that foreign currencies can provide benefits such as real-time exchange rates, cost-effective international payments, and hedging of currencies. Therefore, organizations are caught between a rock and a hard place.
An industry insider noted, “I understand that the (corporate guidelines) working-level task force has concluded and is finalized. It remains to be seen as it is intertwined with the legislative progress of the Phase 2 Act (Basic Digital Asset Act), but the matter has been resolved.”
Globally, regulators are approaching stablecoin oversight differently. The U.S. GENIUS Act of 2025 creates a federal framework for Payment Stablecoin Issuers (PPSIs). They must hold full reserves, meet transparency standards, and undergo regular audits.
Jonathan V. Gould, U.S. Comptroller, stated that this system allows stablecoins to flourish safely. Additionally, the Bank of England recommends a £20,000 individual holding limit and is exploring sterling-backed stablecoins for secure payments.
Outlook for South Korean Businesses
Although corporate investments in these assets are banned, trading these stablecoins through overseas platforms is legal. However, with the conclusion of South Korea’s Digital Asset Basic Act, corporate investments in stablecoins are clearly subject to heavy regulations.
Companies are faced with a dilemma of balancing the need for convenient and cheap payment solutions with legislative challenges. Therefore, companies are currently faced with a complex environment of balancing the use of these assets with heavy regulations.
