The Financial institution of Korea, South Korea’s central financial institution, continues to be lukewarm on proposals to launch a received stablecoin, regardless of a current assembly with the USD Coin (USDC) issuer Circle.
The South Korean media outlet Newsway reported that unnamed Circle executives have held current conferences with officers from the Financial institution of Korea and lawmakers from the Nationwide Meeting.
The events reportedly “exchanged opinions” on stablecoins in personal conferences. The media outlet’s sources mentioned they weren’t at liberty to disclose “the primary agenda or subjects mentioned” on the talks.
Financial institution of Korea: Stablecoin Skepticism
The outlet added that Circle executives are additionally set to satisfy senior figures from the Monetary Providers Fee (FSC). The latter is the nation’s high monetary regulator.
With a brand new authorities now creating its personal monetary insurance policies in South Korea following June 3’s election, energetic discussions on stablecoins at the moment are underway, with “international firms paying shut consideration.”
President Lee Jae-myung has pledged to launch a KRW-pegged coin to be used in enterprise and worldwide commerce.
However as USDT and USDC buying and selling booms on South Korean exchanges, some seem to consider that Seoul ought to let monetary establishments use USD-pegged cash in settlements.
On June 10, the Democratic Get together lawmaker and key Lee ally Min Byung-deok unveiled an amended model of his personal member’s invoice, dubbed the Primary Digital Asset Act.
The revamped invoice has a number of clauses pertaining to stablecoin adoption. The Nationwide Meeting held a public briefing session on the laws on June 17.
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— Reuters World (@ReutersWorld) June 18, 2025
Governor Points Warning
An unnamed home crypto business government instructed Newsway:
“International crypto firms are carefully watching occasions in South Korea. Circle appears to be establishing contacts with the Nationwide Meeting and monetary regulators as a result of it desires to take part within the home market.”
The supply opined that KRW stablecoin issuance was “nonetheless a great distance off,” including: “We’re nonetheless on the opinion-exchanging stage.”
However the Kukmin Ilbo reported that the Financial institution of Korea Governor Lee Chang-yong nonetheless seems skeptical about Lee Jae-myung’s authorities’s stablecoin plans.
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— The Korea Herald 코리아헤럴드 (@TheKoreaHerald) June 13, 2025
The BOK chief mentioned that he “doesn’t oppose” the issuance of a “received stablecoin.” Nonetheless, the governor expressed concern that such a coin may really improve demand for dollar-pegged stablecoins.
The governor defined:
“I believe won-pegged stablecoins are vital, and I’m not in opposition to their issuance. [But] if received stablecoins are issued, it is going to be simpler to change them for greenback stablecoins. And that may improve the demand for greenback stablecoins. In flip, that may make it tough [for us] to handle international change operations.”
Lee Chang-yong additionally opined that stablecoin adoption may additionally damage industrial financial institution profitability. He concluded:
“As soon as the Ministry of Technique and Finance, the Monetary Providers Fee, and different related ministries have [reached a consensus], we plan to fine-tune insurance policies by holding inter-ministerial consultations.”
USDT Volumes Climb
USDT buying and selling volumes proceed to soar on South Korean crypto change platforms. On June 18, Tether’s 24-hour quantity stood at $96,609,745, representing nearly 14% of all of the trades performed on the platform.
The determine is sort of double the 24-hour quantity of Bitcoin (BTC) ($49,556,659). So-called kimchi cash with stablecoin-related venture arms – together with StormX, fanC, and MEV – are additionally experiencing continued development.
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