South Korean companies face regulatory barriers preventing them from accepting stablecoin payments for trade settlements, as the US prepares to implement the GENIUS Act on January 18. Domestic businesses cannot report stablecoin receipts under current foreign exchange regulations and lack access to corporate real-name accounts needed to convert digital assets into Korean won. The regulatory gap has emerged as the US Office of the Comptroller of the Currency finalizes stablecoin oversight rules while South Korea's Digital Asset Basic Act remains stalled due to disputes over exchange ownership restrictions, leaving exporters unable to respond to overseas clients requesting stablecoin payment options.
US GENIUS Act Implementation Set for January 18
The US Office of the Comptroller of the Currency announced final regulations for the GENIUS Act will take effect on January 18. The law establishes issuance and supervision standards for payment stablecoins, with industry observers expecting expanded adoption of dollar-denominated stablecoins for business-to-business transactions as regulatory uncertainty decreases. Blockchain data platform Allium reported stablecoin settlement volume reached $482 billion from January to September, up 45.4% year-over-year, with B2B payments accounting for $134 billion or approximately 28% of total volume.
South Korea's Digital Asset Basic Act Faces Legislative Delays
South Korea's Digital Asset Basic Act remains delayed due to disagreements over provisions including ownership restrictions for virtual asset exchange major shareholders. The government's draft proposal is expected to be released this month. Even after the Basic Act's passage, subsequent amendments to the Foreign Exchange Transaction Act will be required to enable companies to report stablecoin trade payments, followed by financial authority approval for corporate real-name accounts at domestic exchanges to facilitate won conversion.
Korean Companies Blocked by Foreign Exchange Reporting and Account Restrictions
Domestic companies currently cannot accept stablecoin trade payments due to two primary obstacles: the absence of foreign exchange reporting procedures and the lack of corporate real-name accounts for exchange transactions. A senior virtual asset industry official stated, "Even if companies receive stablecoins, authorities do not accept foreign exchange reports, and even if reporting issues are resolved, there are no corporate real-name accounts available to convert to won." The official added that detailed procedures must be established, including which channels should receive payments, whether personal wallets are acceptable, and who handles foreign exchange reporting responsibilities.
Industry Experts Call for Regulatory Sandbox to Enable Stablecoin Trade Payments
Industry representatives have urged authorities to implement regulatory sandbox measures allowing companies to receive and convert stablecoin trade payments while comprehensive legislation is finalized. The senior industry official emphasized, "This cannot be resolved through simple administrative interpretation alone — systems must be created through innovative financial services or similar mechanisms to process actual transactions." Hwang Seok-jin, professor at Dongguk University's Graduate School of International Information Security, stated, "Domestic companies lack sufficient institutional frameworks and financial infrastructure to receive stablecoins and process accounting or exchange transactions," warning that prolonged inaction could weaken competitiveness as companies struggle to accommodate overseas clients' preferred payment methods. Hwang recommended limited stablecoin utilization for legitimate trade transactions, with Foreign Exchange Transaction Act provisions linked to anti-money laundering regulations to ensure transaction transparency and security.
FAQ
What regulatory barriers prevent South Korean companies from accepting stablecoin trade payments?
South Korean companies cannot report stablecoin receipts under current Foreign Exchange Transaction Act provisions and lack access to corporate real-name accounts at domestic virtual asset exchanges needed to convert stablecoins into Korean won.
When will the US GENIUS Act stablecoin regulations take effect?
The US Office of the Comptroller of the Currency announced final GENIUS Act regulations will take effect on January 18, establishing supervision standards for payment stablecoins.
What solution has the virtual asset industry proposed for South Korean exporters?
Industry representatives have called for regulatory sandbox implementation to allow companies to receive and convert stablecoin trade payments through innovative financial service mechanisms while comprehensive Digital Asset Basic Act legislation and subsequent regulatory amendments are finalized.
