South Korea to Exclude Dollar Stablecoins from Corporate Crypto Trading Rules

Steady attention without excessive speculation.

What Happened

South Korea’s Financial Services Commission is preparing to release “Guidelines for Corporate Virtual Currency Trading.” The rules will allow listed companies and professional investment firms to buy cryptocurrencies for the first time since an informal ban took hold in 2017.

Eligible entities, estimated at about 3,500 firms, will be able to allocate up to 5 percent of equity capital to digital assets. The investment universe will include the top 20 cryptocurrencies by market capitalization traded on the country’s five regulated exchanges.

However, the guidelines will exclude dollar-pegged stablecoins. Regulators say the decision reflects conflicts with the Foreign Exchange Transactions Act, which does not recognize stablecoins as valid tools for international payments.

Authorities concluded that allowing corporations to hold USDT or USDC would violate existing foreign-exchange rules. A legislative amendment proposed in 2025 that could legitimize stablecoin payments remains unresolved in parliament.

Why This Matters

For companies, the exclusion removes one of the most practical tools for cross-border payments and treasury management. Stablecoins allow instant settlement and protection against currency volatility, which many firms quietly used through offshore channels.

For regulators, the move reflects concerns about financial stability and currency sovereignty. Authorities want institutional participation to develop gradually while ensuring compliance with foreign-exchange controls.

For investors, the policy signals a controlled approach to institutional crypto adoption. Corporations will gain access to assets like Bitcoin and Ethereum, but stablecoins remain outside the approved framework.

At a structural level, the decision could shift attention toward domestic alternatives. Policymakers are considering legislation that would allow regulated won-denominated stablecoins instead of foreign-currency tokens.

South Korea’s Impact on Crypto

South Korea remains one of the world’s largest retail crypto markets. The new guidelines form part of the government’s 2026 economic strategy, which also includes preparations for spot Bitcoin exchange-traded funds and broader digital-asset legislation.

Debate continues around the Digital Asset Basic Act Phase 2. The proposal includes rules for stablecoin issuance but remains stalled due to disagreements between the FSC and the Bank of Korea over whether banks must control issuance.

While individuals can still trade stablecoins, corporate restrictions may slow institutional use in the short term. Analysts expect regulators to revisit the issue once foreign-exchange laws evolve and a domestic stablecoin framework emerges.