South Korean regulators are considering excluding U.S. dollar-based stablecoins like Tether’s USDT and Circle’s USDC from forthcoming corporate crypto trading guidelines. The move aims to curb early-stage market risks and aligns with efforts to promote a Korean Won-denominated stablecoin. Corporate investments will be limited to major cryptocurrencies like Bitcoin and Ethereum through regulated domestic exchanges.
South Korea’s Financial Services Commission (FSC) is weighing a ban on USD stablecoins in its upcoming corporate crypto rules. This proposal specifically targets major tokens like Tether’s USDT and Circle’s USDC. The measure is designed to “prevent indiscriminate investments’ in the early stages of the market.
The current Foreign Exchange Transactions Act does not recognize stablecoins as external payment methods. An amendment to include them has not yet been ratified despite corporate requests for their use in hedging and settlements. The new corporate rules will allow firms to invest up to 5% of their capital in crypto.
Eligible investments will be restricted to top assets like Bitcoin [BTC] and Ethereum [ETH]. All transactions must be conducted through regulated domestic exchanges such as Upbit and Bithumb. South Korea has been pushing for a Korean Won (KRW)-pegged stablecoin to reduce dollar reliance.
This focus on monetary sovereignty mirrors moves by other nations like China and Russia. Stablecoins are increasingly viewed as a matter of national security in key jurisdictions. The global stablecoin market has grown beyond $300 billion, largely driven by their utility for remittances and payments.
Asia accounts for approximately 60% of all stablecoin activity, accounting for around $245 billion in 2025. Major hubs include Singapore, Hong Kong, and Japan. Many countries in the region are now actively promoting stablecoins tied to their local currencies.
