Leading stablecoin issuers Tether and Circle are expected to meet with top executives from South Korea’s largest banks this week, according to local media.
South Korea’s state-funded Yonhap News Agency reported Thursday that representatives from Tether and Circle are scheduled to meet with the top executives of South Korea’s four major financial groups. The executives are expected to discuss potential partnerships, the issuance of Korean won-backed stablecoins and the distribution of US dollar-backed stablecoins in South Korea.
Shinhan Financial Group CEO Jin Ok-dong and Hana Financial Group CEO Ham Young-joo reportedly have scheduled meetings with Circle President Heath Tarbert on Friday. Young-joo is also reportedly scheduled to meet a Tether official on the same day.
KB Financial Group’s chief digital and information technology officer Lee Chang-kwon and Woori Bank President Jeong Jin-wan also reportedly plan to meet Circle’s Tarbert at an undisclosed time. These represent South Korea’s “Big Four” banking groups, designated by the Financial Services Commission as domestic systemically important banks.
South Korea readies stablecoin regulation
The news follows reports from earlier in the month that South Korea is preparing to introduce a regulatory framework for a won-backed stablecoin. South Korean regulator, the Financial Services Commission, will purportedly unveil the bill as part of a second phase of the nation’s Virtual Asset User Protection Act.
In early July, shares of at least three major South Korean banks surged following the filing of trademarks for stablecoins. This was followed by statements by the banking arm of South Korean IT giant Kakao Corporation announcing that the institution “plans to participate” in the stablecoin market actively.
South Korea’s pivot to focus on stablecoin regulation follows the late June suspension of the country’s central bank digital currency (CBDC) tests in favor of focusing on supporting won-backed stablecoins instead. Prior to the development, eight major South Korean banks were planning to team up to launch a stablecoin pegged to the local fiat currency by next year.
Related: Bank of Korea to launch virtual asset committee to monitor crypto
Just the last of many high-profile meetings
The South Korean meetings are the latest in a series of high-level engagements by Tether and Circle as global regulators move toward clearer rules for stablecoins.
In early March, Tether CEO Paolo Ardoino and Circle’s Tarbert attended a Commodities Futures Trading Commission (CFTC) CEO forum hosted by Acting Chair Caroline Pham in Washington, D.C. The event saw the participation of at least 22 crypto executives and two White House representatives.
The meeting followed mid-February reports that Tether was in talks with US congressional lawmakers to help craft stablecoin regulatory policies. Local stablecoin regulation has since evolved, with the US Treasury Department recently requesting comments related to the passage of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.
Related: South Korea orders exchanges to halt crypto lending services
Tether has also signed agreements with governments abroad, including Guinea and Uzbekistan, to explore blockchain and peer-to-peer payment adoption. In January, the company announced plans to relocate its operations to El Salvador following several meetings between Ardoino and the country’s president, Nayib Bukele.
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