Kim Hyung-nyeon, vice chairman of Dunamu, revealed that U.S. dollar stablecoin issuers are approaching domestic exchanges by offering interest and rewards. He expressed concerns about the implications of the spread of dollar stablecoins on the use of the U.S. dollar.
During a special discussion at the 'Digital Asset Policy Conference (D-CON 2026)' held at the Fairmont Hotel in Yeouido, Seoul, Kim stated, "U.S. stablecoin issuers are continuously knocking on the doors of domestic exchanges, promising interest or rewards to Korean dollar holders."
The U.S. stablecoin regulation, known as the 'Genius Act,' is set to take effect on January 18, 2027. This law prohibits stablecoin issuers from directly offering interest or profit payments but does not explicitly ban rewards provided by third parties such as exchanges.
Kim warned, "If individuals can receive interest-like rewards simply by holding dollar stablecoins in their wallets, the effects of dollarization could become more pronounced." Dollarization refers to the phenomenon where individuals hold or use dollars instead of their domestic currency.
As the U.S. moves toward formalizing stablecoin regulations, there are increasing calls for similar measures in South Korea regarding issuance, distribution, and regulation of operators.
Min Byung-deok, a member of the Democratic Party, emphasized, "Legislation for the Digital Asset Basic Act can no longer be delayed," insisting it must be passed before January 18. The Digital Asset Basic Act encompasses discussions on the issuance and distribution of stablecoins, licensing requirements for virtual asset operators, and governance structures for exchanges.
Min also addressed the controversy surrounding bank-centered stablecoin issuance, stating, "This is an issue that does not exist in any other country in the world," and argued for behavior regulation rather than entry regulation.
Park Soo-min, a member of the People Power Party, stressed that in light of the delays in legislation, financial authorities should first outline regulatory directions. He stated, "A declaration from financial authorities that as long as transparency is maintained, there will be no penalties, similar to the U.S. Clarity Act, is necessary."
He also called for the expansion of corporate and institutional participation in the market, asserting, "Above all, corporate and institutional investments in virtual assets must be fully permitted, as the influx of institutional funds will lead to diverse research and analysis, shaping the direction of regulatory development."
* This article has been translated by AI.
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