- The Bank of Korea and government plan to amend the Foreign Exchange Transactions Act during 2026 to regulate stablecoins as a means of payment.
- A new virtual asset monitoring system will report through the foreign exchange information system to track cross-border digital transactions.
- South Korea’s crypto economy was estimated at $449 billion in the year to June 2026, the largest national total in East Asia, per Chainalysis.
- Jeonbuk Bank became the first South Korean bank to offer Bitcoin-backed won loans for corporate working capital.
South Korea’s central bank and government are preparing an amendment to the Foreign Exchange Transactions Act that would formally regulate stablecoins as payment instruments and in other financial roles.
LATEST: 🇰🇷 South Korea’s government and Bank of Korea plan to revise the Foreign Exchange Transactions Act this year to treat stablecoins as payment instruments, per Digital Asset. https://t.co/jWgXEkkiWo
— CoinMarketCap (@CoinMarketCap) October 23, 2026
The plans, outlined in a Bank of Korea submission for the October 22 parliamentary audit, respond to 2025 National Assembly requests for a comprehensive virtual asset regulatory framework.
New Cross-border Monitoring System In Development
The Bank of Korea is building a virtual asset monitoring system that would integrate reporting through the existing foreign exchange information system, enabling real-time tracking of cross-border digital asset flows.
The central bank named international cooperation against illegal digital asset transactions as a priority, citing vulnerabilities from mixer services and gaps in the oversight of personal wallets.
South Korea’s Crypto Economy: Asia’s Largest
Blockchain analysis firm Chainalysis has estimated that South Korea’s crypto economy reached roughly $449 billion in the twelve months to June 2026, a 12.3% increase and the single largest national total in East Asia, ahead of Japan, Hong Kong, and China. The broader Eastern Asia region recorded around $1.2 trillion worth of crypto activity.
Crackdowns And New Products
The Financial Services Commission banned local users from using 27 overseas unregulated crypto platforms, including KuCoin, MEXC, BingX, Phemex, Bitrue and Poloniex, on October 13 after reviews by the Korea Communications Standards Commission.
In addition, Jeonbuk Bank, a subsidiary of JB Financial Group, has become the first South Korean bank to offer loans backed by Bitcoin in Korean won, with initial uses being to provide working capital to corporates.
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