How will Binance’s criminal case affect its presence in South Korea?

Tether, the company behind USDT, the popular dollar-backed stablecoin, is seeking to establish a presence in South Korea through remote hiring, according to a report from Maeil Business Newspaper citing industry sources.Photo by DrawKit Illustrations on UnsplashRather than opening a physical office, Tether is looking for a remote employee who will focus on increasing USDT adoption in Korea, exploring business opportunities, building partnerships and navigating the local regulatory landscape. The expansion comes as stablecoins gain significant traction in South Korea. Data provided to lawmaker Min Byeong-dug from the country's five largest cryptocurrency exchanges via the Financial Supervisory Service (FSS) shows that dollar-pegged stablecoins accounted for 47% of crypto assets withdrawn from these platforms between January and March. Central bank pushes for regulationMeanwhile, South Korean officials are increasingly focused on regulating the stablecoin sector. Bank of Korea (BOK) Governor Rhee Chang-yong recently called for the swift implementation of stablecoin oversight, warning that they could bypass the country’s financial rules. During a press conference in Italy, Rhee argued that stablecoins pegged to either the Korean won or the U.S. dollar effectively function as alternative currencies and should be examined under existing money transfer laws. Rhee has emphasized that authorities must first determine whether won-backed digital tokens should be permitted at all. Last October, during a national audit, he expressed concerns about stablecoins' dependence on fiat currencies and advocated for implementing a central bank digital currency (CBDC) instead. These concerns were echoed by Ko Kyeong-cheol, head of BOK's electronic finance team, who recently highlighted at a financial law conference that stablecoins could profoundly impact the central bank's ability to carry out monetary policy, maintain financial stability and oversee payment settlements. Ko emphasized that if South Korea were to permit won-pegged stablecoins, the BOK should be involved early in the approval process to minimize potential risks to its policy objectives. On the regulatory front, Financial Services Commission (FSC) Chairman Kim Byoung-hwan has indicated that discussions on developing a stablecoin regulatory framework are likely to begin in June as part of a broader initiative. Presidential candidates weigh in on stablecoin futureThe issue has also entered the political arena ahead of South Korea's June 3 presidential election. Lee Jae-myung, the Democratic Party of Korea's presidential candidate, has advocated for a market featuring won-based stablecoins. Lee argues that quickly adopting stablecoins would help South Korea keep pace with global trends and prevent capital outflows. His platform includes introducing spot crypto ETFs and reducing digital asset trading fees.  Another candidate, Hong Joon-pyo of the People Power Party, also previously announced plans to explore the issuance of a won-pegged stablecoin before being eliminated in the party's primary election.

Korean Financial Authorities to Provide Support for Security Token MarketAmid growing calls for accelerating the growth of the emerging security token (ST) market, the South Korean government is preparing to introduce supportive measures. The security token market is powered by blockchain technology which allows fractional investment in real world assets (RWAs) such as real estate and artwork.Security tokens are digital assets that represent securities generated through a process called security token offering (STO). These tokens, backed by RWAs, can be traded similarly to traditional securities. Investors can use these tokens to obtain shares, voting rights, interest, or profits.Photo by Philip Jang on UnsplashSupport measures for security token IndustryNext month, the Financial Services Commission (FSC) will draw up support measures and policy improvement plans to bolster the nascent security token industry. An FSC representative mentioned that the agency intends to work with the National Assembly to finalize the legislation of security token-related bills by November. Furthermore, the government official said the FSC will actively seek input from industry stakeholders to formulate strategies for enhancing policies designed to promote the growth of the security token market.To align with the national objective titled “The Establishment of Digital Asset Infrastructure and Regulatory Framework,” the FSC revealed regulatory guidelines for security token issuance and distribution in February. These new guidelines are centered around the establishment of institutions responsible for account management and entities engaged in over-the-counter (OTC) trading. Subsequently, in July, lawmaker Yun Chang-hyun, a member of the National Assembly’s National Policy Committee, proposed a bill to amend the Electronic Securities Act and the Capital Markets Act with the aim of ensuring that these Acts are consistent with the new regulatory guidelines.Security token market’s growth potentialWith growing anticipation that the security token market could rival the size of the exchange-traded fund (ETF) stock market, securities firms, banks, and blockchain companies have been eager to carve out a niche for themselves since the start of the year. However, their progress has been hindered by a potentially extended period of higher interest rates in the US and the slow advancement of security token-related legislation. While these organizations tried to explore opportunities through the financial regulatory sandbox, their endeavors proved more or less fruitless. An official from a securities firm voiced concerns over the escalating costs of setting up security token infrastructure, especially with legislative delays.On this matter, the Korea Financial Investment Association (KOFIA) has emphasized the urgent need to pass security token legislation to clear up regulatory ambiguities. They’ve also called for measures to stimulate market growth, such as relaxing regulations related to token issuance and distribution and increasing investment caps.At a seminar hosted by the Korea Capital Market Institute, Ahn Hyuk, Head of the Platform Division at Korea Investment and Securities, highlighted that the rigorous review of security registration applications by the Financial Supervisory Service (FSS) might impede the security token market’s growth. Responding to this, Jang Young-shim, Head of the Corporate Disclosure Department at FSS, said that both the FSC and FSS will carefully listen to industry feedback, addressing a range of topics from regulatory relaxation to investor protection.

Vietnam has launched a five-year pilot program imposing stringent new rules on the cryptocurrency industry, signaling a move toward tighter control over the rapidly growing sector. According to a Sept. 9 report from the Government Electronic Newspaper, cited by Cointelegraph, the resolution put the regulatory framework into immediate effect. The move aims to establish clear rules for the trading and issuance of crypto assets in the country.Photo by Silver Ringvee on UnsplashLocal currency and licensing requirementsUnder the new pilot program, all crypto transactions must be conducted in the local currency, the Vietnamese dong. The rules stipulate that only Vietnamese-registered enterprises may issue digital assets, while foreign investors can access them only through crypto asset service providers (CASPs) licensed by the Ministry of Finance. Firms seeking a license face high barriers to entry. Applicants must demonstrate profitable business operations for the two consecutive years preceding their application. Furthermore, CASPs are required to maintain a minimum capital of 10 trillion dong (approximately $379 million). The pilot also places firm restrictions on the nature of crypto assets themselves. They must be backed exclusively by real, tangible assets. The issuance of assets backed by fiat currencies or securities is prohibited. Broader legal contextThis pilot program follows the country's decision in June to officially legalize digital assets, with the new law set to take effect on Jan. 1, 2026. The legislation categorizes digital assets into two types: virtual assets, used for exchange or investment, and crypto assets, which rely on encryption for validation. The law clarifies that neither category includes securities, digital representations of fiat currency, or other financial instruments already defined under existing civil and financial laws. The framework also mandates that regulatory agencies implement robust measures to ensure cybersecurity and combat money laundering and terrorism financing. High adoption and tech initiativesThe government's focus on regulation comes as no surprise, given Vietnam's position as a global leader in cryptocurrency adoption. A recent study by Chainalysis ranked Vietnam fourth in its 2025 Global Crypto Adoption Index, highlighting widespread grassroots activity across both centralized and decentralized platforms, similar to trends seen in India and Pakistan. Beyond regulation, Vietnam is actively leveraging blockchain technology for national infrastructure. The government has deployed NDAChain, a national blockchain platform designed to authenticate and trace data origins. Developed by the National Data Association, it aims to provide a decentralized layer of trust for critical systems in e-government, finance, healthcare, and education, addressing the vulnerabilities of centralized data models. Hanoi's crypto ambitions also extend beyond its borders. Last month, Vietnam's Military Bank signed a memorandum of understanding (MOU) with Dunamu, the operator of South Korea’s largest crypto exchange, Upbit. The partnership is aimed at developing Vietnam’s financial landscape, with Dunamu providing expertise on establishing a crypto exchange, building a regulatory framework, and implementing investor protection measures.