Bank of Korea to Draft Forex Law Amendment on Stablecoins

Key points

• Bank of Korea will draft a forex law amendment this year to regulate stablecoins as payment
• Plan appeared in an Oct. 22 written submission to the National Assembly audit
• Central bank plans a monitoring system based on foreign exchange network reporting
• Crypto income tax is set for Jan. 1, 2027; tax service finalizes draft notice by Oct. 30

The Bank of Korea said it will draft an amendment to the Foreign Exchange Transactions Act this year to regulate stablecoins as a means of payment, according to a Bitcoin Magazine report published Friday. The plan was disclosed in the central bank’s written submission, dated October 22, to the National Assembly’s annual audit.

What the Bank of Korea plans

Bitcoin Magazine reported that the central bank is consulting the government on cross-border virtual asset transactions and intends to build a monitoring system based on foreign exchange network reporting. The report characterized the approach as pointing toward tighter cross-border controls rather than giving stablecoins legal-tender status.

The bank cited settlement outside the banking system, mixers, and regulatory gaps around personal wallets as factors that make illegal transactions easier, the report said. Until a law is in place, it said it would work with ministries to limit transactions that exploit those gaps. No draft text, named token or passage date has been published.

How it fits with the Digital Asset Basic Act

The forex work runs alongside the Digital Asset Basic Act, a broader framework covering exchange licensing, stablecoin issuance rules and clearer legal definitions, according to The Block. Financial Services Commission Chairman Lee Eog-weon told a parliamentary hearing on Thursday that consultations are in their final stage and that the government will bring the bill forward as soon as possible.

Bitcoin Magazine noted that the framework was flagged in the government’s 2026 growth strategy alongside approval of spot bitcoin ETFs. It also argued that a tighter foreign exchange net could reinforce the capital controls often linked to the so-called kimchi premium, the price gap between Korean and overseas crypto markets.

The crypto tax dispute

The stablecoin plan arrives as lawmakers debate the timing of Korea’s crypto income tax, which is scheduled to take effect January 1, 2027, after three postponements. The Block reported that Lee said taxation should take “various circumstances into full consideration.”

Democratic Party leader Kim Min-seok called for a “thorough final review” of the tax plan, which The Block read as a possibly more flexible stance than before. Two petitions, one to repeal the tax and one to defer it by two years, have each passed the 50,000-signature threshold that triggers a legislative review.

What happens next

The National Tax Service plans to finalize its draft digital asset tax notice by October 30, with a preliminary review and public notice to follow in November under the existing schedule, according to The Block. The Bank of Korea’s forex amendment has no published timetable beyond the stated aim of drafting it this year, and the Digital Asset Basic Act still awaits formal introduction.