Why Circle Is Focusing on South Korea: "Next Year Will Be a Turning Point for Stablecoins" [Crypto Briefing]

[Financial News] Circle, the issuer of the dollar stablecoin, has recently been stepping up its activities in South Korea. The move appears aimed at securing an early foothold in the market ahead of future regulations on won-based stablecoins.
According to the virtual asset industry on the 27th, Circle, the issuer of USD Coin (USDC), has been expanding cooperation with Korean companies since last year.
On the 23rd, it signed a strategic memorandum of understanding with the Kakao Group, including Kakao, Kakao Pay and KakaoBank Corp, to cooperate in the field of virtual asset technology. On the same day, it also signed strategic MOUs with Toss and Toss Bank to explore possible cooperation in blockchain-based payment infrastructure and stablecoin technology.
Circle has been ramping up its activities in South Korea since last year. In August last year, Circle President Heath Tarbert visited the country and met with traditional financial groups, the Bank of Korea, fintech firms and virtual asset exchanges to better understand the Korean market. Then in April, Circle founder and CEO Jeremy Allaire visited South Korea, signed MOUs with Dunamu Inc. and Bithumb, and discussed cooperation measures with Coinone.
Circle's visits to South Korea are being interpreted as an effort to fully enter the infrastructure market for won-based stablecoins. Although South Korea entered the stablecoin market somewhat late, the company appears to be trying to secure infrastructure early, judging that the market has strong potential.
Circle itself has described the Korean market as a 'second mover.' The term suggests that, after a 'first mover' opens up a new market, a more refined regulatory framework can be established.
Dante Disparte, Circle's chief strategy officer, told reporters on the 23rd, "South Korea is a second mover, a country with many opportunities in regulation and policy," adding, "It has the advantage of learning from the strengths of regulations in other countries."
Market watchers are estimating that the won-based stablecoin market could open next year. They say the entry of global companies such as Circle into the Korean market could accelerate the introduction of domestic regulations. In addition, with the U.S. stablecoin law, the GENIUS Act, set to take effect in January next year, preparations for won-based stablecoin rules are becoming urgent.
The authorities also plan to establish regulations next year. In line with the enactment of the General Act on Digital Assets, the government has decided to push for revisions to the Foreign Exchange Transactions Act next year to provide a legal basis for the issuance, distribution and cross-border transactions of won-based stablecoins.
Hong Jeong-wook, a researcher at NH Investment & Securities, said, "While the government has announced plans to revise the Foreign Exchange Transactions Act, Circle has also announced additional partnerships with domestic financial and payment companies." He added, "With both the public and private sectors making efforts, I expect results next year. Since the GENIUS Act is scheduled to take effect no later than January next year, 2027 could become the first year in which stablecoins become mainstream both in Korea and abroad."
[email protected] Lim Sang-hyeok Reporter