KRW Stablecoins Listed on Binance, Says Former Chief

According to Lee Kwang-jae, to gain global popularity, KRW stablecoins should be traded on international exchanges such as Binance and Coinbase

ContentsPush for International AccessGovernment Plans Face Political DelaysStablecoin Control Raises DebateThe former Secretary-General of the National Assembly of South Korea stressed that global listings are the key to their success.

Push for International Access

Lee, a professor at Myongji University, cautioned that restricted domestic access would immensely curtail the global performance of stablecoins. In a recent interview, he expounded that foreigners will have a hard time getting adopted unless they can trade these won-pegged assets. He stated that global presence is primarily used to provide demand and recognition.

He wrote that South Korea’s restriction on foreign access to the crypto market is a handicap. Presently, foreigners are unable to open fiat-enabled accounts with local exchanges like Upbit or Bithumb unless they have a Korean ID and a verified bank account. Lee demanded regulatory reform, in which global investors should have the freedom to deal with coins backed by the KRW.

Government Plans Face Political Delays

The Financial Services Commission is developing a law dedicated to KRW stablecoins. The bill will establish reserve, transparency, and operational rules. The officials regard this as an important step toward a secure digital finance system. However, legislative differences have prevented this from being achieved.

Lawmakers split on whether to develop an all-encompassing framework on digital assets or a specific law on stablecoins. Such delays reflect previous unsuccessful efforts to control digital properties following the 2022 crash of the crypto market. Nonetheless, the introduction of dollar-backed tokens such as USDT and USDC in Korea has been an issue of concern. Officials are worried that increasing dependence on dollar-based assets would diminish the place of the won.

Stablecoin Control Raises Debate

The Bank of Korea has endorsed the idea of KRW stablecoins, albeit with reservations. Governor Rhee Chang-yong has cautioned privately about the risks associated with the issuers. In case of weak oversight, he is worried about capital flight and foreign exchange volatility.

Lee suggested that KRW stablecoins, such as webtoons and K-dramas, may be applied to cultural exports. He also opined that big tech companies like Samsung could issue their own coins. Should such a coin be integrated with Samsung Pay, it could be popular in the world markets. He observed that other local firms can pursue this approach to sustain Korea’s fintech and cultural leverage in foreign countries.