South Korean companies are actively engaging in the development of stablecoins amidst new regulatory changes.
Collaboration of Upbit and Naver Pay
On June 1, Upbit, the largest cryptocurrency exchange in South Korea, and Naver Pay, a fintech platform, announced their collaboration to develop a won-backed stablecoin.
An official from Dunamu, Upbit's operator, stated:
"It seems that Naver Pay will take the lead and Dunamu will cooperate. We will specify the scope and methods of cooperation as soon as the relevant system is established."
Evolving Regulatory Conditions for Stablecoins
Following regulatory changes allowing stablecoin issuance in South Korea, Naver Pay announced it would lead a consortium for their introduction on June 26. Significant support comes from the government: On June 29, President Lee Jae-myung pledged to allow firms to issue stablecoins backed by the national currency. This initiative has garnered considerable interest among major banks such as KB Kookmin and Shinhan, which are also working on their own stablecoin projects.
High Level of Cryptocurrency Adoption in South Korea
South Korea has one of the highest levels of cryptocurrency adoption. A recent report indicates that 27% of its population aged 20 to 50 own crypto assets, with 70% willing to purchase more. This offers additional incentives for companies to develop stablecoins before dollar-backed alternatives gain more traction.
South Korean companies are taking significant steps in stablecoin development in light of new regulatory conditions, which could lead to substantial changes in the digital asset market in the region.
