Tether and Circle to meet South Korea’s top banks on stablecoin adoption

Stablecoin giants Tether and Circle are set for high-level talks with executives from the top four South Korean financial firms

South Korea’s four major banks are meeting with the two biggest global stablecoin issuers. On Thursday, August 21, top executives of South Korea’s major financial groups have set up a meeting with Tether and Circle, according to local media. The executives of Shinhan, Hana, KB, and Woori banks are apparently interested in entering the stablecoin and crypto markets.

Company sources reported that Shinhan Financial Group CEO Jin Ok-dong and Hana Financial Group CEO Ham Young-joo will hold separate meetings with Circle’s President Heath Tarbert on Friday. Ham will also meet an official from Tether later Friday.

KB Financial Group’s CDIO Lee Chang-kwon and Woori Bank President Jeong Jin-wan are also set to meet Circle’s President, but the details on the meeting are not out yet.

South Korea is gearing up for stablecoin regulation

This development comes ahead of expected regulatory changes in South Korea. The pro-crypto administration of President Lee Jae Myung is set to unveil new rules on stablecoins. What is more, the president himself promised to create a won-based stablecoin market during his campaign.

On August 18, local media reported that South Korea’s top financial regulator is drafting stablecoin regulation. According to sources from the governing coalition, the bill, which will define stablecoin issuance, management, and controls, will come out by October.

The main reason for the stablecoin push is the fear that foreign-denominated stablecoins, including USDT and USDC, could soon come to dominate domestic markets. South Korea is one of the countries with the highest crypto adoption, which makes authorities worried about the potential impact of widespread foreign stablecoin use.