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ToggleShould tech companies be allowed to issue stablecoins? This question is currently embroiled in a fierce tug-of-war between South Korean lawmakers and the Bank of Korea. One side argues for allowing stablecoin issuance, while the other insists that it should be the exclusive prerogative of the banking sector.
Just as the internal debate in South Korea was raging, Jeremy Allaire, CEO of Circle, the world's second-largest stablecoin issuer, suddenly appeared in Seoul and personally became involved in the battle.
Instead of issuing a stablecoin, they've become a "technology arms dealer."
According to a report by the South Korean media outlet Maeil Kyungjae, Allaire stated to the media in Seoul that Circle currently has no plans to launch its own digital asset pegged to the Korean won, but the company is "closely monitoring" legislative developments in the South Korean National Assembly. Allaire emphasized:
"If South Korea can establish a legal entry and operating pathway for global companies like Circle, like Hong Kong, Singapore, Japan, and Europe, we would be very happy to obtain a license and set up a branch in South Korea."
During his visit to South Korea, Allaire met intensively with senior executives of the South Korean banking industry and leading cryptocurrency companies. His core demand was very clear: Circle would not vie for the right to issue tokens, but once regulators gave the green light, Circle was ready to provide strong "technical support" to South Korean companies that wanted to issue stablecoins.
Lee Jae-myung's policies stall, leading to a regulatory power struggle in South Korea.
Allaire's visit comes at a sensitive time in South Korean politics. The current regulatory impasse in South Korea mirrors the months-long deadlock in the US Congress over the Clarity Act for the Crypto Markets. The legislative outcomes in both countries will have a profound impact on the global crypto industry.
For South Korean politicians, the stakes of this legislation are extremely high. This is especially true for President Lee Jae-myung, who won the election in June of this year. During his campaign last year, he heavily promoted a stablecoin for the won and promised to legislate for it after taking office. However, since taking office, Lee Jae-myung and his cabinet have repeatedly encountered strong resistance from traditional banks and the Bank of Korea in pushing for the legislation, resulting in significant setbacks.
USDC experienced explosive growth, accounting for 42% of Coinone's trading volume.
However, policy hurdles did not hinder Circle's strong growth in the South Korean market. Besides discussing policy strategies, Allaire's trip also witnessed the popularity of their own US dollar stablecoin (USDC) in the region.
"USDC adoption in South Korea has been steadily increasing; it serves as both a medium of exchange and an investment asset," Allaire told South Korean media outlet TechM at another event. According to reports, Allaire met with executives from several South Korean exchanges and held a separate meeting with senior management at Coinone. The reason behind this is obvious: USDC currently accounts for a staggering 42% of Coinone's daily trading volume , demonstrating strong demand from South Korean investors for USD-denominated stablecoins.
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