The South Korea is currently considering the prohibition of US dollar-pegged stablecoins, including USDT issued by Tether and USDC issued by Circle, within the framework of forthcoming corporate cryptocurrency regulatory measures. The Financial Services Commission (FSC), the country’s regulatory authority, intends to exclude dollar-denominated stablecoins from the scope of regulations governing corporate virtual asset trading.
This regulatory initiative aims to mitigate the risks associated with imprudent investments and to uphold financial stability, while striving to balance innovation with prudent oversight in the cryptocurrency sector. Consequently, corporate entities operating within South Korea may be subject to restrictions on the use of US dollar-pegged stablecoins in their virtual asset transactions.