South Korea’s push to tighten rules for virtual assets is moving into a second legislative phase focused on stablecoins, as policymakers and financial firms step up discussions on how won-linked tokens could be issued and used, according to organisers of an industry forum.
The second phase of virtual asset legislation, described by organisers as a “stablecoin law”, is gaining speed, and the first World Crypto Forum is set to host detailed talks on stablecoins and cross-border payments.
The forum will feature speakers from Japan, whose organisers said have a regulatory system similar to South Korea’s. Japan, long seen as a cash-heavy economy, has recently accelerated the institutionalisation of Web3, including approving stablecoins.
JPYC Chief Executive Noritaka Okabe is expected to outline the changes driven by the introduction of stablecoins and offer guidance for potential Korean won-based stablecoins.
JPYC describes itself as the first regulated yen-linked stablecoin issuer to receive approval from Japan’s Financial Services Agency, and says its token is backed by deposits and Japanese government bonds.
Takezawa Yusuke, chief strategy officer at Progmat, a stablecoin issuance platform co-founded by Japan’s three largest megabanks, Mitsubishi UFJ Financial Group, Mitsui Sumitomo Bank, and Mizuho Bank, is set to discuss possible stablecoin cooperation between South Korea and Japan.
Progmat is also involved in “Project Pax,” described by organisers as a cross-border stablecoin payment infrastructure initiative in cooperation with SWIFT.
Organisers said South Korean banks, including KB Kookmin Bank, Shinhan Bank, Woori Bank, NH Nonghyup Bank, and K-Bank, have participated.
Visa’s Asia Pacific digital currency head, Nissint Sanghavi, will discuss how the payments company is integrating Web3 into its business, including efforts to launch cards that can be used to pay with stablecoins in South America and Africa.
Organisers also said Visa in September announced a test applying the USDC stablecoin as a payment method for its real-time peer-to-peer remittance service, Visa Direct.
Lim Jong-gyu, Asia-Pacific head at LayerZero, is expected to propose ways to integrate and manage stablecoins distributed across multiple blockchains.
Organisers described LayerZero as a “blockchain SWIFT” and said monthly transaction volume using the network totals about 50 trillion won.
South Korean financial groups and payment firms are also set to present Web3 roadmaps centred on stablecoins. Shinhan Financial Group, payments company KSNET, and Open Asset are among the presenters, organisers said.
KB Financial Group, Shinhan Financial Group, Hana Financial Group, and Woori Financial Group are considering forming a consortium aimed at stablecoin issuance and distribution and strengthening partnerships, according to the forum description.
It added that financial holding companies are building operational frameworks for reserve management, risk controls, and links to settlement and remittance infrastructure across banking, card, insurance, securities, and asset management units.