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Tim Alper
Author
Tim Alper
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Lee Kwang-jae, the former Secretary-General of the South Korean National Assembly, says Seoul must make sure KRW-pegged stablecoins are listed on overseas crypto exchanges like Binance and Coinbase.
In an interview with Seoul Kyungjae, Lee, currently a distinguished professor at Myongji University, said that overseas traders must be given access to the coins if they are to be successful.
KRW Stablecoins: Korea Legislation Incoming?
The new South Korean government has talked up the launch of KRW-pegged coins. However, political wrangling has seen progress on related legislation slow to a “standstill.” Lee said:
“If we want to increase demand for won-denominated stablecoins, we must allow for them to be traded on global cryptocurrency exchanges [like Binance and Coinbase, so non-Koreans can trade them].”
This, Lee claimed, will help South Korean coins “secure international acceptance.”
The former lawmaker also said Seoul needs to “open up domestic crypto exchanges” like Upbit and Bithumb to foreign traders.
At present, only South Korean residents can open fiat-compatible accounts on domestic trading platforms.
South Korean law stipulates that crypto exchanges that provide crypto-to-fiat pairings must ensure their customers have dedicated, linked real name-verifed bank accounts.
Without a valid South Korean address and social security number, obtaining such an account is effectively impossible. Lee bemoaned this fact, saying:
“We will only be able to generate global demand when foreigners can enter the South Korean market. We need to let them freely trade won-denominated coins.”
Lee also opined that Samsung, the country’s largest conglomerate, would join the likes of Apple in launching stablecoins in the future. He explained:
“Samsung and Apple dominate the smartphone industry. They will both eventually compete in the stablecoin market as well. Given Samsung’s stronghold in the hardware market, integrating a won-denominated coin into its payment system would have a significant impact.”
Some observers think that Samsung could use a won-denominated stablecoin with its Samsung Pay platform. Such a coin, they claim, could find uses outside South Korea.
Other domestic corporations, they say, may use such coins to strengthen their positions on international markets.
Lee said that Seoul should majke sure cross-border culture, education, and healthcare spaces use KRW stablecoins. He added:
“Only by expanding the use of coins at the national level will they truly gain value.”
Let Overseas Traders Use Korean Stablecoins, Says Professor
The professor said that consumers of South Korean webtoons (web-based comic strips) and drama series titles could be encouraged to use KRW-pegged coins as a currency.
Similarly, KRW stablecoins could be a payment tool for online learning services and remote healthcare customers.
Impasse Continues
Lee also waded into the dispute at the heart of the political impasse that has slowed the progress of stablecoin regulation.
Conservative thinkers believe Seoul should only let major commercial banks issue KRW-pegged stablecoins.
However, more progressive lawmakers want big tech companies to issue their own coins.
Lee argued that the conservative voices were “taking a backward step.” The former National Assembly Secretary-General noted that in other nations, private companies, not banks, issue stablecoins.
He pointed at firms like Tether, the issuer of the USD-pegged USDT token, and Circle, the issuer of USD Coin (USDC).
Lee said that the argument that banks should be the primary issuers of coins was “out of sync with the times.”
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