Key Highlights
- South Korea blocks corporate stablecoin use, citing legal hurdles and market caution.
- Companies see stablecoins as fast, cheap, and safe for cross-border payments.
- U.S. and U.K. set rules to make stablecoins secure, transparent, and regulated.
South Korea is set to block stablecoins from corporate digital asset investments, raising concerns among businesses reliant on these coins. The Financial Services Commission (FSC) is preparing corporate virtual currency trading guidelines, yet dollar-backed stablecoins like USDT and USDC are likely to be excluded.
According to a local report, authorities want to prevent companies from making risky or careless investments, which means businesses have fewer legal ways to use stablecoins. Soon, listed companies and professional investment firms will get clear rules on how they can trade digital assets for investment or financial purposes.
However, stablecoins still face legal roadblocks under the Foreign Exchange Transactions Act, which doesn’t recognize them as an official way to make payments abroad. As a result, allowing stablecoins in corporate investment rules would create a legal conflict, according to the FSC.
A partial amendment was submitted last October to recognize stablecoins as a payment method, but it is still being reviewed.
Legal contradictions and corporate challenges
Currently, South Korean companies can’t use stablecoins for official trade payments. Some businesses get around this by using personal wallets like MetaMask or trading on overseas platforms such as Coinbase OTC.
“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,” an industry insider said.
The fear is that if stablecoins are used without proper regulations, companies may make reckless financial decisions. On the other hand, companies argue that banning stablecoins makes it hard for them to deal with foreign currencies.
They say that stablecoins have benefits like real-time exchange rates, quick and cheap cross-border payments, and hedging against currency risks in an unpredictable market. However, caution is needed over convenience in an emerging market.
Global context of stablecoin regulation
Globally, the United States’ GENIUS Act of 2025 sets up a federal system for payment of stablecoins. Payment Stablecoin Issuers (PPSIs) are required to hold full reserves, adhere to transparency requirements, and undergo regular audits.
As stated by Jonathan V. Gould, Comptroller of the United States, this system should enable these payment instruments to “flourish in a safe and sound manner.”
Additionally, the Bank of England also put forward last year a recommendation of a £20,000 individual holding limit, as well as exploring systemic sterling-backed stablecoins for safe payments.
Even though stablecoins are excluded from corporate investment rules, trading them isn’t illegal. Companies can still buy and sell stablecoins through overseas platforms, but they face legal uncertainty. As South Korea moves to finalize its Digital Asset Basic Act, authorities are making it known that corporate investments in stablecoins will stay heavily regulated.
Also Read: U.S. Senate to Vote on Ted Cruz Amendment to Extend CBDC Ban
