A South Korean financial regulator has argued that stablecoins used for electronic payments should fall under the country’s Electronic Financial Transactions Act. The proposal concerns their use as a payment method; it is not a report that the law has already been applied to stablecoins.
At a discussion in Seoul, Financial Supervisory Service electronic-finance inspection director 沈恩燮 said applying the act would be necessary for fair treatment alongside existing electronic payment methods, user protection and payment-settlement stability. He warned that applying different laws to the same settlement transaction depending on the payment method could create regulatory arbitrage and confusion.
He proposed a small-scale licensing system under the act, along with obligations covering stability safeguards, the preparation and filing of terms, protection of funds loaded and funds awaiting settlement, transaction-information protection and dispute resolution.
At the same discussion, Bank of Korea virtual-assets team head 金保一 questioned how far a national payment system should rely on global private networks. He reiterated the bank’s preference for stablecoin issuance to begin with banks at its center, with eligibility broadened only after the technology has been tested.
According to the report, a government draft of the Digital Asset Basic Act was expected to be released in November 2026 and was expected to envisage bank-led consortia as stablecoin issuers. That was an expectation about a forthcoming draft, not an enacted rule.
Originally reported November 10, 2026, at 16:55 (UTC+8). Original report.