Ministry of Finance and Economy “Cross-border transfer of stablecoins is regulated by the Foreign Exchange Transactions Act”

(Seoul = Yonhap News) Reporter Park Soo-hyun = The government has reaffirmed its policy to regulate cross-border payments using stablecoins in the future through revision of the Foreign Exchange Transactions Act.

Son Seon-young, head of the Foreign Exchange Analysis Department at the Ministry of Finance and Economy, expressed this position at a seminar titled ‘Stablecoin Era, Future of Cross-Border Payments in Korea’ held in Yeouido, Seoul on the afternoon of the 11th.

This event was co-hosted by Democratic Party of Korea lawmakers Jeong Tae-ho and Ahn Do-geol and hosted by the Korea Fintech Industry Association.

Manager Son said, “Matters related to stablecoin issuance will be governed by the Digital Asset Act, which is discussed mainly by the Financial Services Commission, and cross-border transactions will be governed by the Foreign Exchange Transactions Act.”

He continued, “In the future, in connection with the enactment of the Digital Asset Act, the legal nature of stablecoins, cross-border transactions, payment procedures, etc. will be determined through the Foreign Exchange Transactions Act.”

He added, “We will sufficiently communicate the various services, specific models, and market demands prepared by each industry, collect opinions, and prepare institutionalization plans.”

Lee Geun-joo, CEO of Hanpass [408470] and chairman of the Cross-Border Payment Council of the Korea Fintech Association, said in his congratulatory speech, "True cross-border payment innovation will be possible only when technology, finance, data and systems are organically connected."

In the theme presentation on the day, Ripple Asia Pacific (APAC) Director Eunjin Lee said that there is a forecast that $30 trillion (about 4 trillion won) in the fund market worth $50 trillion (about 6 trillion won) could be moved on-chain by 2030.

Director Lee said, “Rather than a change in the economic nature of assets, new options for recording and transferring them arise,” adding, “I believe the actual speed of progress will vary depending on market demand, systems, and technological developments.”

He continued, “There is a saying that the best infrastructure is one where customers do not have to be aware of its existence,” and “Along with technological development, sufficient review of inter-agency cooperation, risk management, user protection, and related systems will be necessary.”

Cho Chang-hyun, CEO of OneSelf World, also said, “The golden time (for Korean won stablecoins) is alive,” and added, “If the Digital Asset Act is submitted within this year and passed early next year, it does not seem to be too late.”

At the same time, he emphasized, “The ecosystem is more important than issuing stablecoins,” and added, “When issuing Korean won stablecoins, we need to think about what user value we will provide and activate, and discuss wallet contact points and data.”

Kim Eun-young, Roland Berger consulting partner, also said, “Changes in the domestic regulatory environment, coupled with global trends, have created an opportune time for financial institutions to enter the business,” and added, “In the end, it is important to see how much (stablecoin) is distributed.”