South Korea Proposes Differentiation Between Stablecoins and Cryptocurrencies

South Korea is considering a draft rule that distinguishes between stablecoins and other digital assets. According to sources, listed companies would be barred from investing in stablecoins like USDT under the proposed regulation.

The new guidelines are intended to differentiate between stablecoins and major cryptocurrencies such as Bitcoin. Under the current proposal, companies can invest in the top 20 non-stablecoin assets, which includes Ethereum.

The main reason for excluding stablecoins is that they are not recognized as legal payment methods under the Foreign Exchange Transactions Act.