Understanding South Korea’s won-backed stablecoin debate

In a first for Bolivia, Japanese automaker Toyota saw one of its vehicles purchased with the stablecoin USDT, according to a recent X post by digital asset trust company BitGo. The transaction underscores growing cryptocurrency adoption in the Latin American country, which is grappling with soaring inflation and a shortage of U.S. dollars. The transaction was facilitated by a partnership between Toyosa (the official Toyota distributor in Bolivia), BitGo, and Tether, the issuer of the USDT stablecoin. The sale highlights the increasing use of digital assets for commercial and retail payments, as the global stablecoin market cap recently reached an all-time high of $293 billion at the time of publication. Confirming the milestone, Tether CEO Paolo Ardoino stated on the social media platform X that, in addition to Toyota, the USDT stablecoin is now also accepted by distributors of BYD and Yamaha vehicles in Bolivia.Photo by Christina Telep on UnsplashCrypto use surges amid inflation and dollar shortage The development comes as Bolivia faces 25% inflation, the highest in 34 years. With the local economy under pressure, many Bolivians are moving their money into cryptocurrencies in an effort to protect their savings, according to Bloomberg. U.S. dollars have become increasingly scarce. Unofficial exchange rates have jumped to 14 bolivianos per dollar, nearly twice the government's rate. That gap is pushing people toward stablecoins like USDT, which are easier to access and hold their value. The shift is already showing up in payment trends. Digital transactions surged more than fivefold in the first half of 2025, reaching nearly $300 million. Regional adoption and Toyota’s blockchain pushThe rise in crypto use in Bolivia is part of a broader shift across Latin America. According to a recent report from analytics firm Chainalysis, crypto adoption in the region jumped from 53% to 63% in the 12 months ending June 2025. The only region to outpace this growth was Asia-Pacific, which saw a 69% year-over-year increase. El Salvador stands as another prominent example in the region, having adopted Bitcoin (BTC) as legal tender in September 2021 and currently holding over 6,300 BTC in its treasury. Separately, Toyota Motor Corporation has been actively exploring applications for blockchain technology. In March, its subsidiary Toyota Financial Services, in collaboration with Daiwa Securities and MUFG Bank, launched its first security token bonds on Progmat, a platform founded by MUFG with backing from other big banks like Sumitomo Mitsui Banking Corporation (SMBC) and Mizuho. The initiative is aimed at strengthening the Toyota Group’s ties with individual investors and supporting the growth of the digital bond market. 

A recent survey in South Korea found that 20.3% of crypto investors have fallen victim to financial losses. Conducted by the Korea Financial Consumers Protection Foundation in late December, the survey polled 2,500 adults aged 19-69, with respondents able to select multiple loss categories. Investors in their 60s were most vulnerable, reporting a 25.3% loss rate. Exchange-related problems constituted the majority of incidents (72.8%), followed by online chat room scams (44.7%) and investment fraud (35.5%).Photo by Growtika on UnsplashExchange failures lead lossesAmong exchange-related losses, 40.6% of users couldn't sell assets due to system failures, while 11.5% lost digital assets through exchange hacking. Overall, exchange technical issues accounted for 52.1% of reported losses, with another 20.7% losing assets when exchanges closed completely. Chat group scam victims experienced various forms of fraud: 23.2% paid for worthless or false information, while 21.5% suffered financial losses through market manipulation or proxy trading schemes. Investment scams included fake crypto projects or fraudulent firms (18.0%), deceptive exchanges (10.3%), and other scams (7.2%). Most victims (75.1%) reported losses under 10 million won (approximately $6,945), with 34.6% losing less than 1 million won. Due to these relatively small amounts, 67.7% took no action following their losses. Of the 32.3% who sought help through various channels, 73.9% were unable to fully recover their funds. Problem worsening across Asia and beyondThis problem extends beyond South Korea. In neighboring Japan, police reported 19,038 crypto fraud cases in 2023, with damages totaling 45.26 billion yen (about $300 million), according to Chainalysis, citing Japanese National Police Agency data. These figures surpass 2022 numbers, indicating continued growth in fraudulent activities. A recent case highlighted by the Fukushima Minyu Shimbun involved a Soma City woman in her 50s who lost approximately 116.6 million yen ($780,000) to scammers impersonating police officers. The fraud began with a fake customer service call, followed by deceptive claims about fraudulent accounts and threats of arrest, which led her to create cryptocurrency accounts and transfer funds before eventually reporting the scam. Elderly at highest risk as fraud surgesThe FBI's Internet Crime Complaint Center's 2024 report further confirms this trend, documenting 149,686 crypto fraud complaints in the U.S. with $9.3 billion in reported losses—66% higher than in 2023. Notably, people over 60 were the most affected demographic, consistent with the Korean study's findings.

Hong Kong SFC CEO Prioritizes Investor Protection in Crypto RegulationsAccording to a report by Chinanews, Julia Leung, Chief Executive Officer of the Hong Kong Securities and Futures Commission (SFC), participated in a seminar organized by the Hong Kong Academy of Finance (AoF). During the event, she emphasized the importance of investor protection in the formulation of guidelines for operators of virtual asset trading platforms.Photo by Kanchanara on UnsplashDevelopment of crypto in Hong KongAt the seminar yesterday, Leung discussed the development of virtual assets in the special administrative region of China. She recalled the pushback the SFC received in 2018 when it first proposed regulations for virtual asset trading platforms. Critics argued that the licensing system, demanding applicants to comply with stringent internal control and investor protection standards, might compel fintech companies to relocate their operations to other jurisdictions, such as Singapore.Market recognition of crypto regulationsDespite initial criticism, the market came to appreciate the importance of these regulatory standards, especially after witnessing the bankruptcy of several overseas cryptocurrency organizations.The guidelines for operators of virtual asset trading platforms in Hong Kong are set to take effect in June. Leung mentioned that these guidelines match market expectations and place emphasis on protecting investors. They encompass regulations for virtual asset custody, the segregation of client assets, and the avoidance of conflicts of interest. She also expressed satisfaction with the SFC’s role as a leading regulator in the virtual asset space.Crypto exchange ratingMeanwhile, Chinese blockchain news media Jinse Finance reported today the official establishment of the Hong Kong Virtual Asset Consortium (HKVAC), a private entity that rates virtual assets.It has also launched a virtual asset index and will introduce a virtual asset exchange rating system. The HKVAC Large Market Cap Cryptocurrency Index comprises the 30 leading cryptocurrencies by market capitalization. The index will be reviewed quarterly on the last day of each quarter (March, June, September, and December). The Virtual Asset Exchange Rating System will assess the credibility of trading platforms and enhance transparency and accountability in the virtual asset trading market.HKVAC was established by a team of industry experts and professional rating agencies. It brings together key stakeholders in the virtual asset industry, such as big data firms, exchanges, and institutional investors, along with the city’s licensed rating agencies. HKVAC aims to cultivate a secure environment for crypto investments and enhance the public’s understanding of virtual assets.