South Korea Bans Corporate Use of USDT and USDC
South Korea's Financial Services Commission finalized guidelines that forbid exchanges from opening corporate wallets for local firms wanting to use Tether or USD Coin. The decision kills a corporate request to use stablecoins for cross-border trade at real-time exchange rates.
Key Takeaway
South Korea blocks corporate stablecoin use while Japan and US firms face no such ban.
South Korea's Financial Services Commission has finished drafting rules that will block companies from using Tether and USD Coin, according to a report by Herald Kyungjae.
The FSC will forbid exchanges from opening corporate crypto wallets for South Korean firms when its Corporate Cryptocurrency Trading Guidelines roll out in the coming weeks. Stock exchange-listed companies in the cross-border trade sector had asked regulators for permission to use USDT and USD Coin at real-time exchange rates to cut overseas business risk.
The FSC rejected that request and wants trade deals routed through foreign exchange banks instead of direct company-to-overseas-partner transactions. The regulator said it aims to prevent firms from making indiscriminate investments in the early stages of the market, and a source told Herald Kyungjae that the corporate guidelines taskforce has concluded its deliberations on the matter with a final decision.
South Korean lawmakers drafted a bill in October that would allow companies to use stablecoins as a payment method, but that legislation remains under National Assembly committee review. The FSC enacted the Act on the Protection of Virtual Asset Users in July 2024, which mandates exchanges use real-name accounts, hacking insurance, and anti-money laundering protocols while giving the regulator power to inspect operations and ban market manipulation. Bitcoin currently trades at ₱3,982,218 ($67,304) and Ethereum at ₱115,022 ($1,944).
This article was written based on reporting from Dlnews.
