HKX latest exchange to drop out of Hong Kong market

South Korea is moving closer to the global stablecoin trend as public curiosity and real-world trials accelerate, even as the country’s central bank signals it wants tight guardrails. A recent analysis from Shinhan Card, reported by Money Today, finds that internet searches for “stablecoin” in South Korea jumped 403% in the first half of this year compared with the previous six months, based on data from major portals such as Google and Naver. Mentions on social media rose 359% over the same period. The spike reflects growing expectations that U.S. dollar-pegged tokens could make cross-border payments faster and cheaper by enabling near-instant settlement at prevailing foreign-exchange rates. Interest has been reinforced by user reviews of actual payment experiences, which climbed between May and July. Crypto-linked cards, including RedotPay and Bybit’s offerings, are already usable domestically and allow top-ups with leading stablecoins such as USDT and USDC. One user described buying a cup of coffee at a local shop with a RedotPay card via Apple Pay. The small purchase underscores how crypto rails are edging into routine spending.Photo by Oat Appleseed on UnsplashFrom curiosity to checkoutTrading venues remain the main arena. According to CryptoQuant, transactions in USDT and USDC on the country’s five leading exchanges totaled nearly $71 billion from January through August, underscoring stablecoins’ central role in crypto liquidity and price discovery. Stablecoin interest in Korea shows a skew toward younger users and men, with men making up 74% of related searches and women 26%. By age, people in their 20s–40s accounted for 66% of searches, while those aged 50 and above represented 34%. Public debate is widening alongside adoption, with some online commenters predicting that stablecoins could chip away at the influence of traditional card networks. At the same time, banks, card companies, and exchanges are bracing for the arrival of a won-pegged counterpart, as the government and parliament prepare a regulatory framework and aim to introduce a bill as early as this month. Domestic card issuers, drawing on their merchant networks and settlement systems, are already exploring how to integrate won-backed tokens in ways that maximize convenience and scalability. Adoption meets skepticismSkeptics counter that Korea’s existing payments infrastructure is already world-class, leaving only marginal gains for a won stablecoin. They also argue that cross-border benefits would be modest because the won lacks reserve-currency status and broad global demand. The Bank of Korea (BOK) has struck a notably conservative tone. Governor Rhee Chang-yong has previously questioned the benefits of a won-denominated stablecoin and warned of risks to the monetary system. Earlier this month, in documents submitted to a lawmaker and reported by The Herald Business, the BOK advised that parliament consider granting it authority to require issuers to deposit reserves at the central bank when necessary. According to the bank, such a measure would strengthen user protection during heavy redemptions, curb money-supply growth outside its control, and ensure that any seigniorage benefits flow to the public. That approach could reduce issuer profits, since deposits at the BOK would not earn interest, just as is the case for commercial banks. The documents also recommend sizing reserves to match the total stablecoin supply, while clarifying that not all of it would necessarily need to be held at the central bank. Issuance path and next stepsAs for who should issue a won-pegged token, the BOK favors starting with a consortium of banks, citing their track record on compliance and the need for a controlled pilot that lets regulators assess and mitigate risks before widening access. The developments suggest a country exploring how stablecoins might integrate into an already sophisticated payments network. Consumers are showing interest, exchanges are handling large flows, and regulators are shaping the legal framework that will define the place of any future won-based digital currency. 

Dunamu Pushes for Biodiversity Conservation Through NFT ProjectDunamu, the fintech company operating South Korea’s leading crypto exchange Upbit, said Monday that it signed a memorandum of understanding (MOU) with the Korea Arboreta and Gardens Institute (KoAGI) and the Korea Green Foundation (KFG) to drive a non-fungible token (NFT) biodiversity project over the course of three years. This comes as part of efforts to ramp up biodiversity conservation efforts.Photo by Eelco Böhtlingk on UnsplashThe MOU was signed at Dunamu’s headquarters in Gangnam, southern Seoul, with Dunamu CEO Lee Sirgoo, Director Ryu Kwang-soo of the KoAGI, and Lee Mi-kyung, Head of the KFG, in attendance.“This partnership serves as a starting point for Dunamu to actively utilize our technology to conserve biological resources — especially trees — and collaborate with various communities,” said Lee Sirgoo, CEO of Dunamu.Conservation meets NFTsThe project will involve creating NFTs from images of plant seeds stored in the Seed Vault — a conservation facility managed by KoAGI — which will then be issued through Upbit NFT, the exchange’s NFT trading platform. Owners of these NFTs will have the opportunity to engage in various events such as quizzes, Dunamu said, thereby promoting biodiversity conservation and fostering awareness about the importance of forests.Additionally, certain plant species that have been issued as NFTs will be selected to be placed in plant conservation facilities built in collaboration with botanical gardens located near the plants’ natural habitats.“Given the irreplaceability of both NFTs and flora and fauna, we will continue to do our utmost to fulfill our environmental responsibilities,” CEO Lee emphasized.The involved parties are also looking to establish an online community where they could directly gather the NFT owners’ opinions through methods such as polling to help plan for more upcoming projects. This integration of online projects with offline conservation activities is expected to contribute to local development and biodiversity.Boosting ESG effortsAs a key part of its ESG strategy, Dunamu has been focusing on trees while leading efforts for environmental protection and forest restoration. Earlier this year, the company teamed up with KoAGI to issue NFTs and contributed its entire sum of sales proceeds and transaction fees of around KRW 20 million (approximately $14,800) to establish an endangered plant protection fund.The company also held a campaign back in March with the Korea Forest Service and the Korea Forest Welfare Institute called “2nd foRest,” dedicated to restoring forests affected by fires. For every virtual tree planted in Dunamu’s metaverse, 2ndblock, two real trees were planted.The following month, Dunamu donated KRW 500 million in aid for the recovery of areas hit by the large-scale forest fires in Gangneung, Gangwon Province. The company also established virtual reality healing gardens at the Geumcheon Fire Station and Seoul Rehabilitation Hospital.

In a major crackdown, the Chengdu Public Security Bureau announced on May 15 the dismantling of an extensive underground banking network, resulting in the arrest of 193 suspects across China in an operation that unveiled illegal businesses using the U.S. dollar stablecoin, Tether (USDT).Photo by DrawKit Illustrations on UnsplashUnauthorized foreign exchange settlements These activities involved illicit transactions amounting to approximately 13.8 billion yuan ($1.9 billion). The investigation began in November 2022 when authorities detected suspicious activities involving underground banks in Chengdu’s Longquanyi district. In response, a specialized task force was formed, integrating experts from various police departments, including economic investigation, cyber security and legal affairs. This team uncovered unauthorized foreign exchange settlements that bypassed national regulations. On June 1 of last year, acting on instructions received from the Ministry of Public Security, the task force conducted coordinated raids in several major cities, such as Shanghai and Shenzhen. These efforts led to the capture of key figures in the criminal syndicate, involving the arrest of 25 suspects. Law enforcement seized numerous bank cards, payment instructions and other digital payment instruments tied to the illegal operations during these raids. A broader investigation across 26 provinces has resulted in 193 suspects being arrested. Using USDT to evade regulationFurther investigations revealed that since January 2021, the syndicate exploited its import and export business to facilitate illegal activities. By using USDT as a medium, they bypassed official foreign exchange channels to service clients needing to transfer funds internationally. Moreover, these operations were intricately linked to other illicit activities, including financial fraud and smuggling. In a related development, on May 13, BeInCrypto reported that the Chinese government arrested six individuals responsible for illicit crypto transactions worth $295 million. These arrests highlight the challenges and risks associated with cryptocurrency in unregulated environments. Additionally, the Hong Kong police recently apprehended three men at a currency exchange shop following a deceptive transaction involving Tether’s USDT. The suspects allegedly showed a customer ceremonial "hell money" before deceitfully persuading him to transfer about $128,073 worth of USDT, only to refuse the agreed-upon cash exchange afterward.  According to the South China Morning Post (SCMP), hell banknotes are a form of ceremonial paper money burned as an offering to ancestors or deities in traditional Chinese culture. Late last year, USDT was used by a gang of gold smugglers in Nepal, who received $16 million in the Tether stablecoin in exchange for the precious metal. A joint investigation carried out by the authorities in Nepal and China led to the arrest of two Chinese and 13 Nepalese nationals in connection with the illicit activity. Over the course of the weekend, it emerged that two Chinese nationals had been charged by the authorities in the United States with money laundering through Bahamas-based Deltec Bank. Deltec acts as the primary banker for Tether, prompting longstanding Tether critics to suggest illicit activity relative to the stablecoin issuer’s dealings with the bank. This series of arrests and discoveries underscores the ongoing efforts of Chinese authorities to clamp down on illegal cryptocurrency activities. The activity also poses problems for Tether in its efforts to maintain compliance and stamp out illicit use in the face of ever-increasing regulatory scrutiny worldwide.