South Korean ruling party proposes forex rules for stablecoins, mandatory trusts for RWAs

South Korea's ruling Democratic Party is advancing a plan to permit real-world assets (RWAs) only on the condition that they are held in a trust, while managing stablecoins as a means of payment under the Foreign Exchange Transactions Act, the Seoul Economic Daily reported. The proposal is part of an integrated 'Digital Asset Basic Act' drafted by the party's Digital Asset Task Force. A special provision within the bill, Article 112, would require any entity issuing digital assets linked to real-world assets to store the underlying assets in a managed trust compliant with the Capital Markets Act. For stablecoins, the plan outlines the application of foreign exchange regulations. Article 124 of the proposed act stipulates that when value-stable digital assets are used in foreign exchange transactions, they will be considered a means of payment under the Foreign Exchange Transactions Act. Consequently, businesses handling such assets would fall under the supervision of foreign exchange authorities without needing separate registration. The bill also includes an exemption, waiving foreign exchange reporting requirements for payments for goods and services made within a specified range.