According to PANews, South Korean lawmaker Park Sung-hoon of the People Power Party plans to propose an amendment to the Foreign Exchange Transactions Act that would officially recognize stablecoins as legitimate payment methods.
The proposed revision aims to close existing regulatory gaps and prevent misuse of stablecoins for activities such as money laundering or tax evasion. Under the amendment, stablecoins would be included in the definition of payment methods in Article 3, Section 1, granting them the same legal standing as cash, banknotes, and coins.
This legislative effort follows concerns voiced by the Bank of Korea, which warned that dollar-backed stablecoins could enable cross-border transactions that bypass current reporting requirements under the Act. The central bank emphasized the need for clear legal frameworks to manage potential financial stability and compliance risks linked to these digital assets.