South Korea Set to Exclude USDT and USDC from Corporate Digital Asset Trading Guidelines

South Korea’s regulators are drafting new guidelines that would permit listed companies and professional investment firms to trade certain digital assets for the first time in years. However, major dollar-pegged stablecoins such as Tether (USDT) and USD Coin (USDC) are set to be excluded from the approved scope.

South Korea’s financial landscape is evolving as the Financial Services Commission (FSC) finalizes “Corporate Virtual Currency Trading Guidelines.” These rules aim to establish clear standards for publicly listed companies and registered professional investors engaging in digital asset transactions for financial or investment purposes.

The framework marks a notable shift after a prolonged period where corporate participation in the crypto sector remained restricted. Previously dominated by retail traders, the market now sees structured efforts to integrate institutional players. Under the proposed guidelines, investments would likely focus on high-market-cap non-stablecoin assets, such as Bitcoin and Ethereum, potentially limited to the top 20 by capitalization and capped at a percentage of equity (reports suggest around 5%).

Why Dollar-Pegged Stablecoins Face Exclusion

A primary factor driving the decision involves alignment with existing legislation. The Foreign Exchange Transactions Act does not classify stablecoins as authorized instruments for international payments, requiring such transactions to route through approved foreign exchange banks. Allowing corporate holdings in USDT or USDC could create inconsistencies with these controls, potentially enabling unintended cross-border flows.

Regulators express caution about introducing stablecoins in the initial rollout, citing risks of disorderly activity or excessive exposure during the market’s developmental phase. This phased approach prioritizes stability while broader reforms advance.

Ongoing Legislative Developments

Discussions around amending the Foreign Exchange Transactions Act have progressed, with a proposal submitted to the National Assembly in late 2025 to potentially recognize stablecoins as valid payment methods. Until enactment, authorities maintain a restrictive stance on corporate access.

Parallel efforts include the Digital Asset Basic Act (Phase 2 legislation), which would provide a comprehensive foundation for digital asset oversight. Once enacted, it could pave the way for refined rules on corporate trading and possibly local won-pegged stablecoin models. A task force has largely completed preparatory work on the guidelines, with final approvals tied to legislative progress.

Current Corporate Practices and Industry Perspectives

Despite formal restrictions, some South Korean firms already utilize stablecoins indirectly for international trade needs. Methods include personal crypto wallets or accounts on overseas platforms, drawn by advantages like rapid settlement times and reduced costs relative to conventional banking channels.

Certain listed companies have advocated for inclusion, highlighting stablecoins’ utility for real-time currency risk management and efficient cross-border operations. Industry voices emphasize these benefits, though regulators appear focused on maintaining legal consistency in the near term.

The outcome hinges on legislative timelines. If amendments to foreign exchange rules advance swiftly, future updates could broaden corporate options. For now, the guidelines signal a controlled entry into digital assets, prioritizing major volatile cryptocurrencies over stable value tokens like USDT and USDC.