Stablecoins have emerged again as a flashpoint for South Korea, where different government bodies have previously clashed over who can issue the tokens in a dispute over consumer safety versus innovation.
South Korea May Ban Stablecoins from Corporate Investments, Herald Economy Reports
9 March 2026 - 08:56 CET
The Financial Services Commission (FSC) is now considering a ban on companies investing in stablecoins, according to a Herald Economy report, as the current legal framework, does not recognize the fiat-backed coins for use in external payments under the Foreign Exchange Transactions Act.
"To prevent indiscriminate investments in the early stages of the market, the authorities have decided to exclude dollar-denominated stablecoins such as Tether (USDT) and USD Coin (USDC)," a translated version of the report said.
Should a corporate stablecoin ban be imposed, companies have already found a workaround, the Herald Economy said, noting that firms can buy and sell stablecoins using personal wallets such as MetaMask or overseas exchanges such as the Coinbase OTC platform.
