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Bank of Korea Wants Stablecoins Written Into Forex Law as Crypto Bill and Tax Fight Come to a Head
The Bank of Korea plans to draft an amendment to the Foreign Exchange Transactions Act with the government before year-end that would regulate stablecoins as a means of payment, according to a written submission to the National Assembly’s annual audit reported by Korean outlet Digital Asset.
The central bank’s October 22 report, a follow-up to last year’s audit, says it is consulting with the government on measures to regulate cross-border transactions in virtual assets.
While building a monitoring system based on foreign exchange network reporting, the bank said, it plans to prepare the amendment with the government this year to regulate stablecoins as a means of payment, among other aims.
That is a plan to write a bill, not a bill in itself. There is no draft text, no named token and no passage date. And “means of payment” is a defined term in Korean forex law: an instrument whose cross-border movement must be reported.
On that reading, the amendment would put dollar stablecoins under the same controls as a wire to New York, not make them legal tender at a Seoul convenience store.
The BOK pointed to settlement outside the banking system, mixers and regulatory gaps around personal wallets as factors that ease illegal transactions. Bitcoin holders who self-custody in Korea should take note: the country’s capital controls are the reason the kimchi premium exists, and a tighter forex net around crypto would entrench those controls rather than ease them.
The forex work runs in parallel with the Digital Asset Basic Act, the licensing and stablecoin-issuance framework flagged alongside spot bitcoin ETF approval in the government’s 2026 growth strategy.
Financial Services Commission chairman Lee Eog-weon told lawmakers Thursday that consultations are in their final stage and the bill will follow as soon as possible, Bloomingbit reported.
The BOK said it will work with ministries to limit transactions that exploit the gap until that law exists.
The gap has a date attached. Korea’s crypto income tax is due to take effect January 1, 2027, according to The Block, after three postponements, and lawmakers have questioned taxing a market before the law defining it is passed.
Lee said Thursday the tax should “take various circumstances into full consideration,” per Yonhap. Democratic Party leader Kim Min-seok called Thursday for a “thorough final review,” a shift from a party that had insisted on 2027.
Two petitions, one to repeal the tax and one to defer it two years, each cleared the 50,000 signatures that force a legislative review.
The National Tax Service has not moved: it plans to finalize its draft tax notice by October 30, Digital Asset reported.
This post Bank of Korea Wants Stablecoins Written Into Forex Law as Crypto Bill and Tax Fight Come to a Head first appeared on Bitcoin Magazine and is written by Micah Zimmerman.
Bitcoin Magazine
OCC Finalizes GENIUS Act Stablecoin Rules, Leaves Rewards Fight Open
The Office of the Comptroller of the Currency on Wednesday finalized its rules implementing the GENIUS Act, becoming the first federal regulator to complete the stablecoin framework Congress passed in July 2025. The rule takes effect January 18, 2027.
The rules set federal standards for payment stablecoin issuers covering reserve backing, redemptions, capital, custody, audits and risk management. It establishes a licensing and supervisory regime for national banks, their subsidiaries, nonbank companies and foreign issuers that fall under OCC jurisdiction.
“We are providing a clear, practical framework for payment stablecoin innovation, with strong standards for reserve backing, redemption, and risk management,” Comptroller Jonathan Gould said in a statement. He described the rule as advancing “President Trump and Secretary Bessent’s vision for American leadership in digital assets.”
The GENIUS Act, passed and signed into law last year, was the first federal statute to govern stablecoins, the dollar-pegged tokens that serve as the main trading pair for bitcoin on most exchanges.
The law required one-to-one reserve backing and annual audits and directed bank regulators to write the implementing rules. The Federal Reserve and FDIC have issued proposals. Treasury is drafting its own.
The most consequential change from an earlier February proposal is what the agency took out.
The GENIUS Act bans issuers from paying interest or yield to stablecoin holders. It does not address exchanges and other third parties that offer rewards on stablecoin balances. Banking groups have labeled this the “stablecoin loophole” and lobbied for months to close it, arguing that yield on tokens could drain deposits and weaken lending.
The proposed rule would have treated certain arrangements between issuers and third parties as presumed violations of the ban. The final rule drops that presumption in favor of case-by-case review.
“We will just let the market develop and address it as it comes,” an OCC official told reporters, declining to say whether existing exchange rewards programs comply with the rule while noting the agency has authority to pursue clear evasions of the ban, according to Crypto in America.
The decision is a setback for banks, which had turned to the OCC after the Clarity Act, the broader crypto market structure bill, failed a Senate procedural vote in September. Stablecoin yield was one of the central sticking points in those negotiations.
The final rule eases several proposed restrictions on reserve management. It scraps a 20-day weighted-average maturity limit on reserve assets, allowing issuers to hold longer-dated Treasuries. Issuers may withdraw surplus reserves at any time rather than once a month, provided outstanding stablecoins remain backed one-to-one.
On redemptions, the agency removed a provision that would have extended deadlines during a surge in withdrawal requests. Issuers must instead notify the OCC within 24 hours if redemption requests exceed 10% of a stablecoin’s outstanding value in a single day, according to Crypto in America.
The OCC has yet to announce when it will accept applications from prospective issuers. Anti-money laundering and sanctions rules will come in a separate rulemaking with the Treasury.
This post OCC Finalizes GENIUS Act Stablecoin Rules, Leaves Rewards Fight Open first appeared on Bitcoin Magazine and is written by Micah Zimmerman.
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