South Korean card issuers line up stablecoin plans as regulation nears
South Korean credit card companies are preparing to develop a stablecoin-powered payment system, Yonhap Infomax reported.
The Credit Finance Association (CREFIA)—a nonprofit comprising credit card firms, leasing companies, and venture capitalists—plans to launch a second task force this month. The group aims to prepare for the anticipated regulatory framework governing stablecoins.
Stablecoin cards, settlement under review
The task force will discuss building a comprehensive system covering the entire transaction process, from stablecoin-based card payments to merchant settlements. The agenda also includes testing stablecoin-powered debit cards, which would allow users to pay at standard card terminals just as they would with traditional cards.
This second task force will include nine credit card companies—including Samsung Card, Shinhan Card, and KB Kookmin Card—that participated in the initial task force formed last July. At that time, CREFIA and the participating firms held weekly meetings on regulatory and technological issues while gathering input from external advisors.
Through that process, the group examined whether credit card companies could legally engage in stablecoin businesses under the current Specialized Credit Finance Business Act. They also jointly filed 30 stablecoin-related trademark applications and reportedly sought consultations with financial authorities on securing payment and settlement accounts for stablecoin transactions.
This push into the sector comes despite lingering uncertainty regarding the government’s phase-2 virtual asset legislation. Progress on the draft has been delayed due to disagreements between financial and monetary authorities.
The Bank of Korea favors a model where only consortia with majority bank ownership can issue stablecoins. By contrast, the Financial Services Commission opposes setting a specific bank-ownership threshold in law to allow participation by non-bank firms.
The forthcoming legislation is expected to comprehensively regulate stablecoins, including their issuance, distribution, and custody, leaving companies to await clearer guidance. Despite the legislative delays, the credit card companies are positioning themselves to move quickly once the rules are finalized.
Investor sentiment shifts to U.S. equities
While traditional financial firms explore digital assets to expand their business, South Korean investors are prioritizing U.S. equities over cryptocurrencies for this year.
According to a weekly survey of 2,000 respondents conducted by CoinNess and Cratos, 30.8% said they plan to focus on U.S. stocks. Cryptocurrencies ranked second at 25.5%, followed by gold and silver (18.3%), Korean stocks (12.8%), and cash (12.7%).
Market sentiment toward Bitcoin also appears cautious. 22.7% of respondents said they expect Bitcoin to rise or surge this week, down from 28.9% the previous week. Meanwhile, 38.3% predicted the price would move sideways, while 39% expected a fall or plunge.
Asked about the broader crypto market, 50.8% of respondents said fear or extreme fear was prevailing.
