South Korean Authorities Exclude Stablecoins From Corporate Crypto Investments – Details

South Korean authorities are reportedly moving to exclude stablecoins from an incoming framework that will allow listed companies to invest in cryptocurrencies. The decision is reportedly tied to existing foreign exchange laws, but reflects a cautious approach in permitting institutional exposure to the digital asset market.

The regulatory pathway being designed by the nation’s Financial Services Commission (FSC) is aimed at allowing publicly listed companies to invest in cryptocurrencies. However, regulators believe that including stablecoins in the approved investment list would conflict with the existing legal framework over cross-border payments. 

For context, stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to a fiat currency, most commonly the US dollar. Tokens such as USDT and USDC typically maintain a 1:1 value with the dollar and are widely used for trading, settlements, and cross-border payments due to non-existent volatility compared with traditional cryptocurrencies.

据韩媒《先驱经济》报道，韩国金融监管机构在拟定允许上市企业投资加密货币的指导方针时，倾向于将 USDT、USDC 等美元稳定币排除在许可名单之外。监管部门认为，由于当前韩国《外国换交易法》尚未将稳定币认定为法定的对外支付手段， 若在指导方针中允许法人投资稳定币，将与现行法律体系产生矛盾。…

However, South Korean regulators argue that these tokens are currently not recognized within the country’s Foreign Exchange Transactions Act, a law enacted in 1998 and implemented in 1999 to regulate currency flows and international payments. The legislation requires cross-border transactions to pass through designated foreign exchange banks and does not recognize stablecoins as legitimate external payment instruments. 

Therefore, allowing companies to invest in stablecoins could potentially enable firms to bypass the country’s foreign exchange control system by conducting overseas payments directly through blockchain networks. Notably, South Korean corporations involved in international trade have expressed hope for stablecoin inclusion to hedge exchange-rate volatility and facilitate near-instant settlements. Nevertheless, the SFC appears inclined to maintain a conservative stance.

The proposed guidelines by the FSC will initially permit investments only in the top 20 non-stablecoin cryptocurrencies by market capitalization, including assets such as Bitcoin and Ethereum. Meanwhile, corporate exposure would potentially be capped within 5% of a company’s own capital, thus helping mitigate financial risks. 

The move is part of a broader shift in South Korea’s digital asset policy. In 2017, authorities imposed strict restrictions on corporate participation in crypto trading amid concerns about speculation and money laundering. Nearly nine years later, regulators are gradually reopening the market to institutional investors under stricter oversight.