South Korean regulators may exclude stablecoins USDT and USDC from corporate crypto investment rules due to conflicts with foreign exchange laws.
South Korean regulators are preparing new corporate cryptocurrency trading guidelines for listed companies. However, authorities may leave the dollar-pegged stablecoins out of the permitted investment list. The move could impact corporate use of assets, such as Tether and USD Coin, for financial operations.
South Korea Weighs Stablecoin Limits in Corporate Crypto Investment Rules
According to a report by Herald Economy on March 7, regulators are preparing Corporate Virtual Currency Trading Guidelines. These rules will govern listed firms and professional investment corporations trading in the digital assets.
According to Herald Economics, South Korea's financial regulators are inclined to exclude dollar-pegged stablecoins such as USDT and USDC from the list of permissible investments when drafting guidelines for listed companies to invest in cryptocurrencies. The regulators believe…
— Wu Blockchain (@WuBlockchain) March 7, 2026
However, officials are said to have reached a consensus to exclude dollar-backed stablecoins in the early stages. Assets such as Tether and USD Coin may not be included on the permitted investment list. Authorities believe the decision will prevent an excess of corporate speculation during the first phase of the market.
Related Reading: South Korea Caps Crypto Exchange Ownership at 20% for Major Shareholders | Live Bitcoin News
Regulators say the current legal framework is creating complications for stablecoin investments. The country’s Foreign Exchange Transaction Act does not recognize stablecoins as a proper cross-border payment method. Therefore, implementing them as part of investment guidelines could generate legal contradictions.
Under current rules payments from abroad had to pass through designated foreign exchange banks. Stablecoins are not currently recognized as official external instruments of payment under that law. As a result, regulators feel corporate stablecoin investment may go against financial regulations.
Authorities are planning to release final trading guidelines once they are done with the Digital Asset Basic Act. The purpose of this legislation is to establish a clearer regulatory framework for the digital asset markets in South Korea. Consequently, the corporate cryptocurrency trading rules will heavily rely on the progress of the broader law.
Meanwhile, stablecoins continue to be widely used across the world due to rapid settlement and low transaction costs. They also allow swift international transfers as opposed to traditional banking systems. Therefore, many companies consider stablecoins to be useful in cross-border transactions.
Legal Conflicts Shape South Korea’s Stablecoin Investment Restrictions
Despite the potential exclusion, there has been a continued rise in the corporate demand for stablecoins over the past few years. Several listed companies with large international trade exposure reportedly asked to be included in the guidelines.
Stablecoins also enable businesses to hedge against exchange rate risks when conducting transactions internationally. For example, companies can keep dollar-pegged tokens that track real-time currency values. This approach assists companies in managing this volatility when trading in multiple international markets.
However, the legal environment is the key challenge to corporate adoption. In October last year, lawmakers introduced the amendments to the Foreign Exchange Transaction Act. The proposal aims to acknowledge stablecoins as a legal payment tool for cross-border transactions.
The amendment is still being scrutinized in the National Assembly. Therefore, regulators would rather not have regulatory conflicts until the lawmakers complete the legislative process. Including stablecoins in the absence of legal recognition may allow companies to avoid existing foreign exchange rules.
At first, regulators were to leave investment scopes undefined in the guidelines. However, authorities decided later to set clear boundaries in order to avoid uncontrolled corporate speculation. Early restrictions may mitigate the risks while the domestic digital asset framework continues to develop.
