The South Korean government is reportedly exploring applying the Foreign Exchange Transaction Act to stablecoins such as Tether (USDT), drawing parallels to currencies like the US dollar and Japanese yen. This initiative, reported by Munhwa Ilbo, signifies a move towards stricter regulation of the cryptocurrency market. The Ministry of Economy and Finance is actively researching potential violations of the Foreign Exchange Transaction Act related to stablecoins and considering necessary improvements to the legal framework. This suggests a proactive approach to address the evolving landscape of digital assets. Experts anticipate that applying the Foreign Exchange Transaction Act would impose limitations on international stablecoin transactions. Specifically, remittances and receipts exceeding certain thresholds would likely require documentation and proof of purpose. This could impact the ease of use and cross-border transfer of stablecoins within South Korea, aiming to curb potential illicit activities. The move reflects growing global scrutiny of stablecoins and their potential impact on financial stability. ```
