BOK to Draft Forex Amendment for Stablecoin Rules as Crypto Bill and Tax Debate Reach Critical Point

The Bank of Korea stated it will work with the government to draft an amendment to the Foreign Exchange Transactions Act before the end of the year. The change is intended to classify stablecoins as a payment method, according to a Digital Asset report citing a submission to the National Assembly's annual audit.

A follow-up to the central bank's 2025 audit, its October 22 report states that it is conferring with the government on how to oversee cross-border virtual asset movements.

While constructing a system to monitor based on foreign exchange network data, the bank said it is preparing the amendment with the government this year. Among its aims is regulating stablecoins as a means of payment.

This is a plan to produce a bill, not a bill itself. A specific draft, a named digital asset, and a date for passage are all missing. The term 'means of payment' is a specific legal definition in South Korean foreign exchange law, referring to an instrument that requires reporting when moved across borders.

Under this interpretation, the amendment would bring dollar stablecoins within the same framework as a wire transfer to New York, rather than making them legal tender for a purchase in a Seoul convenience store.

The central bank pointed to transactions outside the banking system, mixers, and a lack of regulation around personal wallets as factors that make illegal activity easier. Korean bitcoin holders who manage their own keys should pay attention: the 'kimchi premium' exists because of the country's capital controls, and a stricter foreign exchange framework for crypto would strengthen those controls rather than loosen them.

This forex effort is occurring at the same time as the Digital Asset Basic Act, a licensing and stablecoin-issuance framework that was highlighted alongside the approval of spot bitcoin ETFs in the government's 2026 growth blueprint.

Financial Services Commission Chairman Lee Eog-weon informed lawmakers on Thursday that consultations are in their concluding phase and that the bill will be introduced shortly, according to Bloomingbit.

The BOK stated it will cooperate with ministries until that law is in place to limit transactions that take advantage of the gap.

South Korea's crypto tax discussions

The regulatory gap now has a deadline. South Korea's crypto income tax is scheduled to start on January 1, 2027, as reported by The Block, following three delays. Lawmakers have asked how a market can be taxed before the law that defines it is enacted.

Lee stated on Thursday that the tax should "take various circumstances into full consideration," Yonhap reported. Democratic Party Leader Kim Min-seok also called for a "thorough final review" on Thursday, a change for a party that had previously insisted on the 2027 date.

Two petitions—one aiming to repeal the tax and another seeking a two-year delay—each surpassed the 50,000 signatures needed to require a legislative review.

The National Tax Service itself has not altered its course: it intends to complete a draft tax notice by October 30, as reported by Digital Asset.