South Korea is drafting plans to issue a South Korean won stablecoin led by banks, with trading and payment platforms competing for the top-up and settlement markets.
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The draft of South Korea’s Digital Asset Basic Law, set to be released this month, will propose that a bank-led consortium be responsible for issuing the Korean won stablecoin. However, even with banks handling issuance, exchanges and third-party payment platforms may still take on the circulation role connecting consumers and merchants, with user access and application scenarios emerging as key competitive factors. It is reported that the business integration between Dunamu, operator of Upbit, and Naver Financial could become a major variable. If the relevant services are approved to be integrated, Dunamu can generate revenue from stablecoin transactions, while Naver Financial is expected to collect fees from merchant payments and settlements. A South Korean financial regulatory official noted that if stablecoins are used for electronic payments, the relevant businesses may need to comply with the Electronic Financial Transactions Act, and must clarify obligations including protecting top-up and settlement funds, managing transaction information, and handling disputes.
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