South Korea is considering the introduction of foreign exchange controls over stablecoin transactions, reflecting the government's concern over their increasing use in international trade. The country's Ministry of Economy and Finance is exploring measures to enhance the stability of cryptocurrency transactions, particularly those involving stablecoins.
While stablecoins are currently used primarily within the cryptocurrency ecosystem, the ministry believes they may soon become a means of payment and settlement in the real economy. There are concerns that these assets operate outside the state's control, which could pose a threat to the stability of the country's currency market.
No specific timeline for the introduction of controls has been announced yet. However, the Financial Services Commission is expected to focus on discussions regarding stablecoin regulation as part of an upcoming legislative initiative, drawing on the experience of Japan and the European Union.