South Korea's Financial Services Commission (FSC) has confirmed that dollar-pegged stablecoins, including USDT and USDC, will be excluded from the country's upcoming corporate cryptocurrency trading guidelines. The decision, reported around March 5, 2026, stems from a taskforce within the regulator that has finalized its stance, according to a source close to the matter speaking to local newspaper Herald Kyungjae.
Stablecoins Hit Legal Roadblock
The FSC argues that the Foreign Exchange Transaction Act does not recognize stablecoins as legitimate instruments for cross-border payments. Corporate settlements must go through licensed foreign exchange banks. Allowing firms to hold USDT or USDC would create assets that cannot be legally used for trade, regulators say. Sudden legalization could also trigger indiscriminate investment, officials warned.
Several listed South Korean companies involved in cross-border trade had lobbied for stablecoin access, arguing the tokens enable faster payments, real-time exchange rate settlements, and reduced currency volatility. Their lobbying reached lawmakers last year, but the FSC has moved ahead with the restrictive framework.
Bill Stalled in National Assembly
A bill drafted in October 2025 that would allow stablecoins as a payment method remains under review in a National Assembly committee. While legislators debate, the FSC's administrative guidelines have already closed the door for corporate stablecoin use. Meanwhile, the government plans to permit institutional trading of major cryptocurrencies such as Bitcoin and Ethereum, reopening digital asset access for listed firms after nearly a decade.
Domestic Stablecoin Rules in the Pipeline
Policymakers are also considering separate rules for domestic stablecoin issuance. Proposals include a minimum capital requirement of 5 billion KRW (about $3.7 million) for issuers, banks holding majority stakes in stablecoin ventures, and a 20% cap on major shareholder ownership in crypto exchanges, with exceptions up to 34%. These measures align with global calls for tighter stablecoin regulation from the U.S. Treasury and the Financial Stability Board, but South Korea's outright ban on dollar stablecoins for corporates stands out among major economies.