Former House Speaker: South Korean won stablecoin must be traded on Binance.

Seoul, September 8, 2025 - Lee Kwang-jae, the former Secretary General of the National Assembly of South Korea and currently an outstanding professor at Myongji University, recently stated in an interview with the Seoul Economic Daily that South Korea should accelerate the listing of stablecoins linked to the Korean won on global Crypto Assets exchanges (such as Binance and Coinbase) and allow overseas traders to trade freely on domestic exchanges (such as Upbit and Bithumb) to enhance the international recognition and market demand for the Korean won stablecoin. This proposal has sparked widespread attention and has become a hot topic in the recent South Korean Crypto Assets market.

Korean Won Stablecoin: A Key Step Towards Internationalization

Distinguished Professor Li Guangzai of Mingzhi University. (Image: OBS Radio/Screenshot)

Lee Kwang-jae pointed out that the success of the Korean won stablecoin requires participation from the global market. He stated: “If we want to increase the demand for stablecoins denominated in Korean won, we must make them available on global crypto assets exchanges like Binance and Coinbase so that non-Koreans can trade them.” He believes that allowing overseas traders to enter the Korean market is key to creating global demand. Currently, Korean law requires customers of crypto assets exchanges to have bank accounts verified with real-name identification, and only residents with a Korean address and social security number can open such accounts. This restriction prevents overseas traders from directly participating in transactions on domestic exchanges in Korea.

Lee Kwang-jae further suggested that South Korea should allow foreign traders to trade on major domestic exchanges such as Upbit and Bithumb to break down existing barriers. He emphasized: “Only when foreigners can enter the Korean market can we truly create global demand and allow the stablecoin denominated in Korean won to gain recognition on the international stage.”

Samsung may lead the wave of Korean won stablecoins.

Lee Kwang-jae also predicted that South Korea's tech giant Samsung is expected to play an important role in the stablecoin sector. He stated, “Samsung and Apple dominate the smartphone industry, and they will eventually compete in the stablecoin market as well. Given Samsung's strong position in the hardware market, integrating the Korean won stablecoin into its payment system will have a significant impact.” Some market observers believe that Samsung may launch the Korean won stablecoin on its Samsung Pay platform and apply it to the international market to enhance the competitiveness of South Korean companies globally.

In addition, Lee Kwang-jae proposed that the application scenarios of the Korean won stablecoin should be expanded to cross-border culture, education, and healthcare. For example, consumers of Korean webtoons and dramas, as well as users of online learning and telemedicine services, can use the Korean won stablecoin for payments. He stated, “Only by promoting the widespread use of the Korean won stablecoin at the national level can they truly realize value enhancement.”

Regulatory deadlock and policy disputes

Despite the new South Korean government's active push for legislation on the Korean won stablecoin, the related process has progressed slowly due to political differences, even falling into a state of “stagnation.” Conservatives advocate allowing only major commercial banks to issue Korean won stablecoins, while progressives support large tech companies issuing their own stablecoins. Lee Kwang-jae criticizes this view, arguing that the idea of banks monopolizing stablecoin issuance is “out of touch with the times.” He cites international examples, pointing out that mainstream global stablecoins such as USDT (issued by Tether) and USDC (issued by Circle) are issued by private companies rather than banks, proving the potential of tech companies in the stablecoin field.

Lee Kwang-jae emphasized that South Korea needs to align with global trends and encourage private enterprises to participate in stablecoin issuance to promote innovation and market competitiveness. He warned that if South Korea continues to hold a conservative position, it may fall behind in the global stablecoin market.

The Current Situation and Challenges of the Korean Crypto Market

According to data from the Korea Financial Intelligence Unit (KoFIU), there were about 6 million Crypto Assets investors in South Korea in the first half of 2023, accounting for over 10% of the national population, indicating a strong interest in Crypto Assets in South Korea. However, the South Korean crypto market is highly dependent on centralized exchanges, with Upbit holding about 80% of the market share, while other exchanges such as Bithumb, Coinone, and Korbit also play significant roles in the market.

Recently, the South Korean crypto market has experienced some fluctuations. In December 2024, due to political turmoil, the prices of crypto assets saw drastic volatility, and the Upbit exchange temporarily suspended trading due to a surge in traffic, with a large influx of funds attempting to buy the dip. Additionally, the South Korean government plans to invest $2.2 billion in metaverse and blockchain technology by the end of 2025, demonstrating long-term support for the crypto industry.

However, strict regulatory policies remain a major challenge for the South Korean Crypto Assets market. In 2021, South Korea implemented the “Act on Reporting and Using Specific Financial Transaction Information”, which requires exchanges to comply with anti-money laundering obligations and link to real-name bank accounts, leading to over 60 small exchanges that did not meet the standards facing shutdown. International exchanges such as Binance and OKEx have also gradually exited the South Korean market due to regulatory pressure, with Binance having stopped offering KRW trading pairs and Korean language support.

Lee Kwang-jae's proposal points to a new direction for the development of the South Korean Crypto Assets market. By promoting the listing of the Korean won stablecoin on global exchanges and opening the domestic market to overseas traders, South Korea is expected to take on a more significant role in the global Crypto Assets market. However, this requires close cooperation between the government, regulatory bodies, and the private sector to address regulatory hurdles and establish a clear policy framework.

At the same time, the future development of the Korean crypto market still faces uncertainty. How to balance innovation and regulation, and how to highlight the advantages of the Korean won stablecoin in global competition, will be significant issues for the Korean government and enterprises. As Lee Kwang-jae said: “Only through openness and innovation can the Korean won stablecoin truly become a part of the global market.”