South Korean lawmakers have introduced a bill to amend the Foreign Exchange Transactions Act, aiming to regulate stablecoins as legally recognized payment methods. Led by People's Power Party lawmaker Park Sung-hoon, the proposal seeks to close regulatory loopholes and prevent the use of stablecoins for illicit activities such as money laundering and tax evasion. The amendment will classify stablecoins alongside traditional payment instruments like government banknotes and coins. This legislative effort aligns with concerns from the Bank of Korea, which recently highlighted the risks associated with US dollar stablecoins. The central bank warned that these digital assets could circumvent existing reporting requirements under the Foreign Exchange Transactions Act, potentially facilitating unauthorized cross-border transactions.