South Korea is set to introduce a legislative change that would officially recognize stablecoins as legal payment methods. This proposal, spearheaded by lawmaker Park Sung-hoon from the People Power Party, aims to address regulatory gaps in existing laws and prevent illegal uses of stablecoins, such as money laundering and tax evasion. The amendment would add stablecoins to the definition of payment methods within the Foreign Exchange Transactions Act, granting them similar legal standing to traditional payment tools like government-issued currency, banknotes, and coins. This move follows concerns raised by the Bank of Korea, which recently expressed worries about potential risks associated with dollar-backed stablecoins. The central bank highlighted that these stablecoins could potentially evade reporting procedures outlined in the Foreign Exchange Transactions Act, leading to transactions related to current and capital accounts between countries.