South Korea Hesitates on Stablecoin Inclusion for Corporate Crypto Investors

South Korea's move to open the crypto market to corporate investors may come with some caveats, particularly when it comes to stablecoins like USDT and USDC.

The country's financial watchdog has expressed concerns that including stablecoins in the rulebook could conflict with existing foreign exchange laws. This is because these laws do not recognize stablecoins as official payment instruments, which could allow businesses to sidestep the country's FX control framework by using them for international transactions.

A proposed amendment to the Foreign Exchange Act aims to classify stablecoins as payment instruments and address this issue. However, until it is approved, their use remains restricted.