South Korea plans bank-led issuance of Korean won stablecoin; exchanges and payment platforms to compete for deposit and settlement markets

Odaily reports: South Korea's draft "Digital Asset Basic Act," expected to be published this month, will propose that a bank-led consortium be responsible for issuing the Korean won stablecoin. However, even if banks handle issuance, exchanges and third-party payment platforms may still handle the circulation layer connecting consumers and merchants, with user entry points and application scenarios becoming key battlegrounds.

It is reported that the business integration of Upbit operator Dunamu and Naver Financial may become an important variable. If related services are approved to be connected, Dunamu could generate revenue through stablecoin transactions, while Naver Financial is expected to collect fees through merchant payments and settlements. South Korean financial regulatory officials noted that if stablecoins are used for electronic payments, related businesses may need to comply with the Electronic Financial Transactions Act, and clarify obligations including protection of deposit funds and settlement funds, transaction information management, and dispute resolution. (zdnet)