Following reports that South Korea is preparing to launch a Stablecoins legal framework in October, top executives from some of the country’s biggest financial groups will meet with executives from Stablecoin Giants Tether and Circle Internet Group this week.
Tether problems USDTcircle problem USDCthe two largest in the world stablecoins By market capitalization.
According to the Korean News Agency Yonghapexecutives discuss the potential distribution and use of dollar-covered stubcoins in Korea. The meeting will also cover the issuance of Stablecoins, supported by the national currency, WON.
Shinhan Financial Group, Jin Ok-Dong and CEO of Hana Financial Group Ham Young-Joo will hold separate meetings with circle president Heatherbert on Friday. Ham is also reported to have met an unnamed official from Tether later on Friday.
Meanwhile, KB Financial Group’s Chief Digital and Information Technology Director Lee Chang-Kwon and Woori Bank’s president Jeong Jin-Wan are also said to be planning a meeting with the circle’s president, but no official date has been set yet.
Rajiv Sawhney, head of international portfolio management at Wave Digital Assets International, thinks the development is “interesting” given how South Korean regulators have treated Crypto in the past.
“The regulators there have historically blocked foreign agencies from registering and operating in the area,” he said. Decryption. “This is a very domestic market, and exchanges there are permitted to list spot products rather than perpetuating the use of trade.”
He points out that Upbit, the country’s biggest exchange, is entirely Korean-owned and operated, and that list is primarily cited against Korean winners.
Korea and stub coin
Lee Jae-myeon, the current president of the East Asian nation, despite the widespread view of encryption, a proper legal framework has proven to be politically debate within the country. Under his presidency, Bitcoin ETFs are heading towards legalizing the country, but surveillance of crypto KYC and AML is on the rise.
The country’s ruling parties and opposition parties have expressed different opinions on how to regulate the region, while opposition Democrats have discussed the use of profit-generating stubcoins and enforce strict capital restrictions.
Meanwhile, executives of the South Korean central bank have been able to “coexist” with stubcoins issued by the private sector, pondering the linking of deposit tokens to public blockchains.
However, these issues have not stopped some Korean companies from already preparing to issue their own stubcoins. Korean Internet Conglomerate Cacao has recently registered the trademark of the Korean winner stubcoin.
Sawhney claimed that a joint venture or partnership between Circle or Tether and one of the banks would allow Korean fintech companies to “maintain market share on Stablecoin Space” while issuing their own Won-based Stablecoins.
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