Bae, Kim & Lee highlights legal uncertainties for stablecoins ahead of new legislation

South Korean law firm Bae, Kim & Lee LLC has outlined key legal issues regarding the issuance of stablecoins that require examination under current regulations, ahead of the country's second phase of digital asset legislation. The firm raised several critical questions, including the current legal status of stablecoins like USDT and USDC on domestic exchanges, the likelihood of their classification as securities, and whether issuers could be considered Virtual Asset Service Providers (VASPs). Further points of examination include the legality of issuing a won-backed stablecoin for payments, the use of corporate accounts to buy stablecoins for settlements, and the criteria exchanges use for listing them. The firm also questioned the legality of purchasing stablecoins with credit cards, the compliance of DeFi services offering interest on stablecoin deposits, and the potential regulatory framework for stablecoins in the upcoming legislation.