Top stablecoin companies Tether and Circle are set to meet with high-ranking officials from South Korea’s largest banks this week, as reported by local media.
The state-funded Yonhap News Agency noted on Thursday that delegates from both Tether and Circle will engage with executives from South Korea’s four major financial institutions. Discussions will revolve around potential collaborations, the issuance of Korean won-backed stablecoins, and the distribution of US dollar-backed stablecoins within the country.
Shinhan Financial Group’s CEO Jin Ok-dong and Hana Financial Group’s CEO Ham Young-joo are reportedly scheduled to meet with Circle President Heath Tarbert on Friday. Young-joo is also said to have a meeting arranged with a Tether representative on the same day.
KB Financial Group’s chief digital officer Lee Chang-kwon and Woori Bank President Jeong Jin-wan are also scheduled to meet with Tarbert at a yet-to-be-disclosed time. Together, these institutions represent South Korea’s “Big Four” banking groups, recognized by the Financial Services Commission as domestic systemically important banks.
South Korea prepares stablecoin regulation
This news follows earlier announcements that South Korea is on track to implement a regulatory framework for won-backed stablecoins. The Financial Services Commission is expected to unveil the bill as part of the second phase of the country’s Virtual Asset User Protection Act.
In early July, the shares of several prominent South Korean banks surged after they filed trademarks for stablecoins. This was followed by the banking division of Kakao Corporation announcing plans to actively engage in the stablecoin sector.
South Korea’s shift towards stablecoin regulation occurs after the suspension of its central bank digital currency (CBDC) tests in late June, as the focus moves to supporting won-backed stablecoins. Previously, eight major South Korean banks intended to collaborate on launching a stablecoin pegged to the local currency by next year.
Related: Bank of Korea to initiate virtual asset committee for crypto oversight
Another high-profile meeting
The forthcoming meetings in South Korea add to a series of significant engagements by Tether and Circle as regulators worldwide work towards clearer stablecoin regulations.
Earlier in March, Tether CEO Paolo Ardoino and Circle’s Tarbert participated in a Commodities Futures Trading Commission (CFTC) CEO forum led by Acting Chair Caroline Pham in Washington, D.C. The event was attended by around 22 crypto executives along with two White House representatives.
This meeting followed mid-February reports indicating Tether’s discussions with US congressional representatives to help shape stablecoin regulatory policies. Since then, local stablecoin regulations have evolved, with the US Treasury Department recently soliciting comments related to the proposed Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.
Related: South Korea instructs exchanges to suspend crypto lending services
Tether has also formed agreements with overseas governments, including Guinea and Uzbekistan, to explore blockchain and peer-to-peer payment adoption. In January, the company declared intentions to move its operations to El Salvador after multiple meetings between Ardoino and the nation’s president, Nayib Bukele.
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