South Korea’s New Corporate Crypto Rules May Leave Stablecoins Out

• South Korea is drafting corporate crypto trading rules allowing companies limited digital asset access.
• Stablecoins like USDT and USDC are likely to be excluded from the initial framework.
• Firms can still access stablecoins through wallets or overseas OTC platforms.

South Korea is moving to open its cryptocurrency market to corporations for the first time, but regulators are taking a measured approach, keeping stablecoins off the table for now as the country tests the waters of institutional digital asset participation.

According to reports, the Financial Services Commission is developing guidelines that would allow listed companies and registered professional investment firms to buy and sell cryptocurrencies for investment or treasury management purposes. Major tokens such as Bitcoin and Ethereum are expected to feature on the approved list. Dollar-pegged stablecoins, including USDT and USDC, are not, at least in the initial phase.

Regulators appear wary of stablecoins’ role in cross-border payments and their broader implications for financial stability. By excluding stablecoins in the initial phase of corporate crypto trading, authorities aim to reduce potential financial stability risks while they continue evaluating the sector.

Banks Are Watching Closely

The policy shift is being closely tracked by financial institutions with a stake in the game. Brokerage firm Korea Investment & Securities initiated coverage of Kbank this week with a neutral rating, citing regulatory uncertainty and rising competition in lending as near-term headwinds. 

Despite the exclusion from corporate guidelines, stablecoin trading itself will not be completely impossible for companies. Firms can still access these assets through personal crypto wallets such as MetaMask or via overseas platforms like Coinbase’s OTC (over-the-counter) trading services.

However, the timing of its implementation could still depend on legislative developments tied to the Phase 2 Digital Asset Basic Act, which is currently under discussion.

Stablecoins Continue to Gain Global Attention

Globally, stablecoins have expanded rapidly in recent years. The market’s circulating supply has grown from less than $30 billion in 2020 to more than $300 billion today.

However, deeper analysis shows that much of this volume does not represent real-world payments. A large share of stablecoin activity is tied to trading, internal fund transfers between exchanges, automated smart contract interactions, and liquidity management operations within blockchain ecosystems. Research suggests that only a small portion of stablecoin activity is tied to real-world payments. 

Related: French Hill Says Stablecoins Should Focus on Payments, Not Rewards