South Korea's financial regulators are drafting guidelines to allow listed companies to invest in cryptocurrencies, but are excluding stablecoins like USDT and USDC from the approved list. The decision stems from the current Foreign Exchange Transactions Act, which does not recognize stablecoins as legal foreign payment methods, potentially conflicting with existing laws. Despite some companies' interest in using stablecoins for hedging and instant settlement in cross-border trade, the Financial Services Commission (FSC) plans to initially permit investments only in the top 20 non-stablecoin assets by market capitalization, such as Bitcoin and Ethereum. Investment limits may be capped at 5% of a company's own capital.
South Korea Excludes Stablecoins from Corporate Crypto Investment Guidelines
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