South Korea’s public, private sectors stoke foreign interest in crypto markets

Delegates from France and South Korea are meeting for a two-day seminar to discuss the changes in the global economy as it rapidly grows. 

Meanwhile, legal processes to regulate stablecoins in South Korea are facing delays, forcing companies to continue their crypto operations through partnerships with international central banks and stablecoin services aimed exclusively at foreign nationals.

Why are South Korea and France discussing digital assets?

The Bank of Korea (BOK) has begun a two-day joint seminar with the Banque de France (BdF) in Seoul, following French President Emmanuel Macron’s state visit to Korea, where both leaders agreed to deepen economic ties last Friday. 

This is the second year of partnership between the two central banks. The academic exchange was launched in 2024 to respond to changes in the global economy. 

The talks focus on three main areas regarding digital assets. First, officials are looking at how stablecoins and central bank digital currencies (CBDCs) affect the international monetary system.

Secondly, the changing roles of central banks and commercial banks in a financial system where assets are tokenized are examined. The session will also include analyzing how climate change drives inflation and creates risks for financial institutions. 

The French delegation is led by Deputy Governor Agnès Bénassy-Quéré. The Korean side includes BOK Deputy Governor Lee Jae-won. The Banque de France is a leader in wholesale CBDCs, while the BOK is moving forward with “Project Han River,” which entered its second phase of real-transaction testing last month.

Why are crypto firms launching services for foreigners only?

Major financial companies that are unable to launch services for local users due to legal delays are rolling out stablecoin payment systems for overseas visitors. 

The Digital Asset Basic Act, the legislation needed to regulate domestic stablecoins and exchanges, has been delayed. The National Assembly has postponed discussions on the second phase of virtual asset legislation until after the June local elections. 

Disagreements over who can issue won-based stablecoins and how much of an exchange a single shareholder can own still remain. 

Korean financial firms can provide stablecoin services to foreigners in the meantime because foreign nationals use dollar-based stablecoins like USDC, which are held in overseas wallets. These transactions fall under the Foreign Exchange Transactions Act rather than South Korea’s crypto laws. 

Hana Card (Hana Financial Group) recently partnered with Circle and Crypto.com. They launched a pilot on March 5, allowing foreign visitors to pay at local merchants using USDC. Foreign holders of Crypto.com Visa cards get 5% cashback.

Danal plans to launch a service this month with Circle and Binance Pay. Visitors can pay with crypto without a currency exchange, while merchants receive Korean won. 

Crypto.com partnered with local payment firm KG Inicis to launch Crypto.comPay. Other companies like BC Card are testing USDC technology with Coinbase, and KB Kookmin Card has filed a patent for hybrid payment systems.

Jeremy Allaire, Circle’s CEO, will meet with Korea’s top banks like KB Kookmin, Shinhan, and Hana, and the three largest virtual asset exchanges, Upbit, Bithumb, and Coin One to discuss won-based stablecoins and global payments.