South Korea is preparing changes to its foreign exchange law that would bring stablecoin payments under closer scrutiny. The government and Bank of Korea are looking to tighten oversight of cross-border crypto transactions, with amendments to the Foreign Exchange Transactions Act planned by the end of 2026.
According to a parliamentary submission dated October 22, the central bank is consulting government officials on the proposed changes. Additionally, it plans to develop a monitoring system that tracks virtual asset transactions through the existing foreign exchange information system.
Bank of Korea Targets Cross-Border Risks
The proposal follows lawmakers’ calls during a 2025 parliamentary audit for stronger digital asset oversight and improved payment infrastructure. Moreover, the central bank warned that crypto mixers, personal wallets and regulatory gaps can complicate efforts to detect illegal transactions.
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Consequently, the Bank of Korea wants greater international cooperation to combat illicit digital asset transfers. It also plans to work with government ministries to address regulatory gaps while broader legislation advances.
South Korea Expands Crypto Oversight
The proposal comes amid tighter enforcement against unregistered crypto businesses. On October 13, South Korea’s Financial Services Commission announced restrictions targeting 27 websites, including KuCoin and MEXC.
South Korea’s crypto market saw $449 billion in inflows between July 2025 and June 2026, according to Chainalysis. That was 12.3% more than in the previous year.
Banks are also beginning to offer services tied to crypto assets. Jeonbuk Bank recently introduced Bitcoin-backed loans for corporate customers, allowing businesses to use their Bitcoin holdings to secure financing.
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