"Applying foreign exchange regulations to stablecoins"…First bill introduced in the National Assembly

A bill to include stablecoins (virtual assets pegged to fiat currencies) as 'means of payment' under the Foreign Exchange Transactions Act is being introduced. It is a legislative measure to block illegal foreign exchange transactions and tax evasion using stablecoins.

According to the industry on the 28th, Rep. Park Seong-hoon of the People Power Party plans to be the principal sponsor of an amendment to the Foreign Exchange Transactions Act that specifies stablecoins as a means of payment. The amendment adds stablecoins to the definition of 'means of payment' in Article 3(1) of the Act. It would grant them the same legal status as existing banknotes, bank bills, and coins.

Park said, "Stablecoins are recognized as a new means of payment whose value is linked to fiat currencies, but under current law they are not subject to the Foreign Exchange Transactions Act, creating a regulatory blind spot." He added, "There is a high possibility of illegal foreign exchange transactions and tax evasion exploiting this," and explained, "The aim is to include virtual assets pegged to domestic and foreign currencies as legal means of payment to clarify the supervisory framework."