South Korea Blocks Dollar Stablecoins for Corporates

• Corporate crypto rules allow firms to trade major coins like Bitcoin and Ethereum but exclude USDT and USDC.

• Regulators cite foreign exchange laws, requiring cross-border payments through licensed banks, not stablecoins.

• Some firms lobbied for stablecoin use for faster payments, but proposals remain under review in the National Assembly.

South Korean financial regulators plan to prevent corporations from trading dollar-pegged stablecoins such as USDT and USDC under upcoming crypto guidelines. The Financial Services Commission confirmed the decision during policy discussions reported around March 5, 2026. Officials say foreign exchange laws do not recognize stablecoins as payment instruments, creating legal conflicts for corporate transactions.

Regulators Move To Exclude Stablecoins From Corporate Rules

South Korea’s Financial Services Commission is preparing Corporate Cryptocurrency Trading Guidelines for listed firms. These rules will reopen digital asset trading for corporations after nearly a decade.

However, regulators intend to exclude stablecoins such as Tether’s USDT and USD Coin. According to local newspaper Herald Kyungjae, a taskforce has finalized that decision. A source close to the taskforce told the newspaper the deliberations have ended.

The source added that regulators consider the decision final. Under the guidelines, crypto exchanges could eventually open corporate wallets for domestic firms. Yet the proposed framework will not include dollar-pegged stablecoins.

The Financial Services Commission reportedly wants companies to conduct international payments through foreign exchange banks. Consequently, regulators prefer existing banking channels for cross-border settlements.

Trade Firms Push for Stablecoin Payment Options

Several listed South Korean companies involved in cross-border trade requested stablecoin access. According to local reports, these firms wanted to hold USDT or USDC on corporate balance sheets.

Executives argued stablecoins could support faster international payments. They also said the tokens would allow settlements using real-time exchange rates. In addition, companies claimed stablecoins could reduce currency volatility risks during overseas transactions. Their lobbying efforts reached lawmakers last year.

In October, legislators drafted a bill allowing stablecoins as a payment method. However, the proposal remains under review within a National Assembly committee. While lawmakers debate the measure, the Financial Services Commission has moved forward with regulatory guidelines.

Foreign Exchange Rules Shape Government Policy

The current Foreign Exchange Transaction Act does not recognize stablecoins as external payment instruments. As a result, regulators say corporate use would conflict with existing law. In South Korea, foreign payments must pass through licensed foreign exchange banks.

Allowing stablecoins could create a situation where companies hold assets they cannot legally use for trade. Regulators also raised concerns about early market behavior. Officials warned that sudden legalization could trigger indiscriminate investment activity.

Despite the stablecoin restriction, the government plans to permit institutional trading of major cryptocurrencies. According to discussions from the March 2026 Virtual Asset Committee meeting, listed firms may purchase assets such as Bitcoin and Ethereum.

Meanwhile, policymakers are considering separate rules for domestic stablecoin issuance. Some proposals require issuers to hold at least 5 billion KRW in capital. Authorities also discussed requiring banks to maintain majority stakes in stablecoin ventures. Additional rules could limit major shareholder stakes in crypto exchanges to 20%, with some exceptions reaching 34%.