South Korea May Ban Stablecoins in Corporate Crypto Rules

South Korea is preparing new rules that could allow companies to invest in crypto. However, regulators may exclude stablecoins such as USDT and USDC from the approved investment list. According to a report from local media outlet Herald Economy, financial authorities are drafting guidelines. That would allow listed companies to buy and hold certain cryptocurrencies. 

At the same time, regulators want to limit risks in the early stage of corporate participation in crypto markets. Under the current proposal, companies could invest in top cryptos like Bitcoin and Ethereum. But U.S. dollar stablecoins may not be included. Because they conflict with existing financial laws in the country.

Regulators Aim for a Careful First Step

South Korea’s Financial Services Commission (FSC) is leading the effort to create new guidelines for corporate crypto investments. The goal is to open the digital asset market to companies while still keeping strict safeguards. For years, South Korea’s crypto market has been dominated by retail investors. Now, regulators want to gradually allow listed corporations. Including investment firms to enter the space.

But officials plan to take a cautious approach. The current draft suggests companies may only invest in the top 20 cryptos by market capitalization, excluding stablecoins. In addition, the rules could place a limit on how much companies can invest. Early discussions suggest that firms may be allowed to invest up to 5% of their own capital in digital assets. This approach aims to prevent excessive risk during the early stage of corporate participation.

Legal Conflicts Drive Stablecoin Exclusion

The main reason behind the possible ban on stablecoins is South Korea’s existing legal framework. Under the country’s Foreign Exchange Transactions Act, stablecoins are not recognized as an official means of international payment. Because of this, allowing companies to invest in dollar-pegged stablecoins. That could create a legal conflict. 

Financial regulators believe that including stablecoins in the guidelines. It might indirectly allow companies to use them for cross-border payments. That could clash with current foreign exchange rules. Which require most international payments to go through authorized banks.

As a result, regulators appear ready to exclude stablecoins from the first version of the corporate investment guidelines. But the law may change in the future. A proposed amendment that would recognize stablecoins as a legal payment method is currently under review in South Korea’s National Assembly.

Businesses Still Want Stablecoin Access

Even though regulators are cautious. Many businesses still want access to stablecoins. Companies involved in global trade often use stablecoins. Because they allow fast and low cost international transfers. In addition, stablecoins can help businesses hedge against currency fluctuations. Some South Korean firms reportedly already use stablecoins through overseas exchanges or personal wallets. Even though official corporate access remains restricted. Because of these benefits, several companies have requested that regulators include stablecoins in the investment guidelines.

Part of a Larger Crypto Policy Shift

South Korea has been slowly expanding its crypto regulations in recent years. The country approved crypto ETFs in 2025. It is now working on broader legislation under the Digital Asset Basic Act. Regulators will likely introduce the new corporate investment guidelines once they clarify that framework. For now, regulators appear focused on a cautious rollout. By allowing companies to invest in major cryptos while limiting stablecoin exposure. South Korea hopes to balance innovation with financial stability.

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