Tether-Circle Compete to Dominate Korean Stablecoin Market.. Responding to Legalization [CryptoBriefing]

[Financial News] Tether (USDT) and Circle (USDC), which monopolize the dollar stablecoin market, have each launched operations in Korea. As discussions on the legalization of domestic won stablecoins accelerate, the strategy is to strengthen collaboration with the government, the National Assembly, and private companies.
According to the National Assembly and related industries on the 19th, Tether, the issuer of USDT, has recently hired Korean employees and is seeking government and National Assembly relations. Tether's entry into the domestic market involves strengthening strategic partnerships through the role of 'Expansion Manager'.
Previously, Tether employees based in places like Venezuela traveled back and forth to Seoul, creating physical and time distance, but now Korean employees are expected to directly address Tether-related issues.
Tether's hiring of Korean employees coincides with the legalization of won stablecoins. According to the 'Act on the Issuance and Distribution of Value-Stabilized Digital Assets' proposed by Andogeol, a member of the Democratic Party, the Financial Services Commission can order virtual asset business operators to suspend trading support for foreign-issued value-stabilized digital assets (stablecoins) like Tether and Circle under certain conditions.
A Web3 company official said, "Tether is an example of a small number of employees becoming the world's number one stablecoin issuer based on blockchain," adding, "Since it is unlikely to receive approval from the U.S. government under the U.S. stablecoin bill (Genius Act) requirements, it seems to be expanding its activities across Asia, including Korea." In other words, it is reported that efforts are being made to express positions on overseas-issued stablecoin regulations domestically.
Circle's President Heath Tarbert is scheduled to visit Korea this month to meet with the government and the National Assembly. Tarbert, who served as the chairman of the U.S. Commodity Futures Trading Commission (CFTC), is particularly pushing to meet with policymakers, including the Ministry of Strategy and Finance, the Bank of Korea, and the Financial Services Commission, as well as members of the National Assembly's Planning and Finance Committee and Political Affairs Committee.
A commercial bank official said, "It is known that they are entering Korea consecutively this month and next month to meet directly with banks, fintech, virtual asset businesses, and policymakers," adding, "Since they are positioning themselves as the most legally and regulatory-compliant stablecoin issuer in the U.S., they are also striving to create a regulation-friendly environment in Korea, Japan, Vietnam, and other countries."
In particular, Seoul is considered a country where the 'mass adoption' of Web3, the biggest challenge in the industry, is relatively fast. Circle's newly introduced stablecoin-specialized blockchain (Layer 1) 'Arc' also aims to support stablecoin payment and capital market infrastructure to meet global financial demand.
A representative from Xangle Research said, "Currently, stablecoin-based services face barriers such as fee volatility and the introduction of large corporations and financial institutions, and complex partner cooperation is required for new service launches," adding, "However, using Circle's Arc can implement selective privacy features."

elikim@fnnews.com Kim Mi-hee Reporter