Korean Government Considers Applying Foreign Exchange Laws to Stablecoins Amid Growing Use and Risks

The Ministry of Strategy and Finance has initiated research into applying foreign exchange laws to stablecoins. There is a possibility that stablecoins like Tether (USDT) could be classified as foreign exchange comparable to dollars or yen. This move appears to be a proactive response to the expansion of stablecoins as global payment and trade instruments following the enactment of the U.S. GENIUS Act. It is also speculated that a foreign remittance limit without supporting documentation, such as $100,000 per year for individuals, might be implemented. In Korea, unofficial use of stablecoins is becoming apparent, especially in the Gangnam area where exchange shops and merchants actively convert USDT to KRW. Some merchants are even accepting stablecoin payments from foreign buyers. However, concerns over money laundering and illegal remittances are rising, raising the need for monitoring by authorities like the Financial Intelligence Unit and customs,