South Korea’s leading political and academic figure is pushing the government to accelerate its plans for digital currencies. Lee Kwang-jae, former Secretary-General of the National Assembly and now a professor at Myongji University, urged that won-pegged stablecoins be listed on major global exchanges like Binance and Coinbase. Lee stressed that these KRW stablecoins, set to launch soon, would have little impact unless they were accessible to international investors. In an interview with Seoul Kyungjae, he warned that the coins would struggle to gain global recognition without foreign participation. Interest in KRW-pegged stablecoins has grown over the years. Still, momentum is rising now, with the government backing their development as part of efforts to reduce reliance on the U.S. dollar in international trade. Lee argued that success would depend on domestic regulation and the ability to trade the coins freely internationally. He said that platforms such as Binance and Coinbase must be allowed to list them, as this was the way to generate demand. This adds South Korea to one of the world’s most severe crypto regimes currently in place. Non-Koreans cannot open fiat-enabled accounts at domestic exchanges such as Upbit or Bithumb without a Korean social security number and real-name verification of their bank accounts. This serves to isolate outsiders from trading won-denominated digital assets. Lee criticized the restrictions, stating that worldwide demand could only increase if outsiders entered the Korean market. Observers noted that his can-do attitude fell short in cryptocurrency trading, but he insisted that people should be able to trade won-denominated coins. Government drives stalls in parliament The Financial Services Commission (FSC) is unveiling a dedicated bill for KRW stablecoins. The law will likely encompass regulation on reserves, transparency, and operational standards . Officials call it a crucial step toward creating a secure digital financial system. But the road ahead is rough. Political wrangling has stalled progress, with rival bills being discussed in parliament. Some legislators call for a full digital asset act, while others work on a more narrowly targeted law syncing to stablecoins. The delays echo earlier setbacks. Previous efforts to regulate the sector have halted amid concerns about investor protection, money laundering, and the 2022 crypto market collapse, which shook public confidence. Even with the gridlock, regulators are under pressure to react. The rise of dollar-backed coins like USDT and USDC in Korea’s crypto markets has raised concerns about “dollarization.” Officials are concerned that if Koreans come to use dollar-pegged tokens en masse, they could surrender national monetary sovereignty. Banks and tech firms battle over stablecoin control The Bank of Korea has sounded cautious, however. Gov. Rhee Chang-yong has said he supports KRW stablecoins in principle. However, he is concerned about capital flight and potential foreign exchange volatility if their issuance is entrusted to private companies without appropriate protective measures. Lee’s vision is broader than banking and finance. He suggests KRW-stablecoins could be woven into Korea’s cultural and technological exports. He added that Korean webtoons, dramas, and online education platform users should be encouraged to use coins pegged with KRW. Lee proposed that such coins could also be incorporated into healthcare services for international patients and cross-border cultural exchange programs. He forecast that Samsung, the country’s tech giant, could eventually issue its stablecoin, similar to Apple, which is reportedly considering the same. Lee said that a coin backed by the won and integrated into Samsung Pay would be used more widely, particularly within Samsung’s ecosystem, than any other cryptocurrency worldwide. Other domestic companies may follow suit with the KRW stablecoin to do so as part of their global expansion strategies. Using such bank cards may boost Korea’s so-called soft power abroad, marrying fintech and K-culture, which has a following worldwide. Get $50 free to trade crypto when you sign up to Bybit now
