Stablecoin impasse continues in South Korea.
Circle boss Allaire says firm won’t issue a won-pegged stablecoin.
USD Coin trading is booming on some South Korean exchanges.
Should tech companies be allowed to issue stablecoins?
South Korean lawmakers and central bank officials are locking horns over that question, with one side saying yes while the other argues that stablecoin issuance should be the sole prerogative of the banking sector.
And Circle CEO Jeremy Allaire suddenly waded into this fray this week. The top dog at the US’ biggest stablecoin issuer told the press in Seoul Circle has no plans to launch a won-pegged digital asset, but that the firm is “closely watching” developments in the National Assembly.
“If a legal pathway is established for global companies like Circle to legally enter and operate, just as we have done in Hong Kong, Singapore, Japan, and Europe, we are very willing to obtain a license and establish a South Korean branch,” Allaire said, according to South Korean newspaper Maeil Kyungjae.
Allaire has been busy meeting South Korean banking chiefs and some of the country’s top crypto firms, pitching Circle’s ability to provide technical support to South Korean firms that want to issue stablecoins — once they receive the green light.
Allaire’s comments come as South Korean politicians are looked in a similar struggle that US lawmakers have found themselves in in terms of the Clarity Act, the landmark crypto markets bill that has been gridlocked on Capitol Hill for months. The outcome of both squabbles could have far-reaching consequences for the crypto industry.
The stakes are particularly high for South Korean politicians. Failing to get the new stablecoin rules finalised could be massive setback for South Korean President Lee Jae-myung, who talked up won-pegged stablecoins on the campaign trail last year, and promised to legislate for them if he took power.
But since his June victory, Lee and his government have found themselves frustrated by the banking sector and the Bank of Korea.
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USD Coin boom
Stablecoins were not the only item on the agenda for Circle chiefs during their Seoul visit.
Circle’s US dollar-backed stablecoin USD Coin trading volumes are booming in South Korea.
“USD Coin is already growing in South Korea, both as a means of trading and an investment asset,” Allaire said at a separate event, per South Korean media outlet TechM.
Allaire reportedly met a range of exchange chiefs during his visit, but took time to hold separate talks with Coinone executives.
USD Coin accounts for 42% of daily trading volumes on Coinone, per CoinGecko data.
Tim Alper is a News Correspondent at DL News. Got a tip? Email him at tdalper@dlnews.com.
