Reported by Jun Ji-hye

(Excerpt shared below. To read full report, go to: https://www.koreatimes.co.kr/amp/economy/cryptocurrency/20251029/korea-makes-first-legislative-move-to-curb-money-laundering-via-stablecoins)

Korea is set to introduce its first legislative measure to bring stablecoins under the Foreign Exchange Transactions Act as part of efforts to block money laundering and tax evasion involving digital assets, National Assembly officials said Tuesday.

Stablecoins are digital currencies designed to maintain consistent value by being tied to central bank-issued currencies, such as the U.S. dollar, or to physical assets like gold. Tether (USDT) and USD Coin (USDC), both pegged one-to-one to the U.S. dollar, are among the most widely-used stablecoins.

According to Assembly officials, Rep. Park Sung-hoon of the main opposition People Power Party plans to propose a bill that classifies stablecoins as a legal “means of payment” under the act, placing them alongside existing instruments, including government-issued notes and banknotes.

Park explained that although stablecoins are gaining recognition as a potential new form of payment, they are not officially recognized under the Foreign Exchange Transactions Act because their characteristics differ from traditional currencies.