Korean Crypto Exchange Giants Lead Market Expansion With Increased Listings

South Korean crypto exchanges list USDTBithumb and Coinone, two of South Korea’s largest cryptocurrency exchanges, have recently listed Tether (USDT) — the USD-pegged stablecoin issued by Tether Limited — according to an article by local news outlet Kyunghyang Games on Thursday (local time). Both exchanges support Tether trading on the TRON network.Photo by DrawKit Illustrations on UnsplashTether gains momentum in South KoreaBithumb listed the currency today at KRW 1,316 in response to high investor demand. Meanwhile, Coinone, which listed Tether on Nov. 30 to become the first fiat-to-crypto exchange in the country to facilitate USDT/KRW trading, cited reasons such as Tether’s reliability and transparency, demonstrated by regular updates on its audits and reserves. The listing price was KRW 1,289.Industry sources anticipate that USDT/KRW trading in South Korea will eventually lead to reduced transaction fees and a simplified transaction process for domestic traders. Previously, in order to access most overseas markets where USDT is used as the default currency, users have had to sell their assets overseas first and then repurchase USDT to participate in trading.Simplified transactions are also expected to contribute to balancing pricing across different markets and reducing the Kimchi premium — a term used to describe the difference between trading prices of cryptocurrencies in Korea and in other foreign exchanges.Promotional eventsTo mark the occasion, Bithumb is offering a promotional event where 0.02% of the price of maker orders placed by Dec. 11 will be distributed to users in Bitcoin on Dec. 14. Maker orders are those that are placed at an asking price that differs from the current price, which means it is added to the order book instead of being matched or executed immediately. These orders add liquidity to an order book.Bithumb users can also make USDT withdrawals free of extra fees until Dec. 11. Coinone, on the other hand, requires a withdrawal fee of 1 USDT.According to CoinMarketCap, Tether has the third-largest market capitalization at approximately $90.1 billion as of this writing. The token’s trading volume in the last 24 hours was $49.3 billion.

Experts Gather at KBW 2023 to Explore the Future of Blockchain and Web3Blockchain and Web3 experts from around the world gathered at the Shilla Hotel in Seoul on Tuesday and Wednesday to attend Impact, the main conference of Korea Blockchain Week (KBW) 2023. There, they shared insights on the challenges faced by the blockchain industry as well as future prospects, especially their anticipation for South Korea’s role in shaping the industry’s landscape.Photo by Terren Hurst on UnsplashCurrent challengesAmong these experts was Sid Powell, CEO and Co-founder of Maple Finance; Stephen Richardson, Managing Director of Financial Markets and Head of the Asia Pacific region at Fireblocks; and Kelvin Koh, Co-founder and CIO at Spartan Group, who discussed the opportunities presented by bridging traditional finance with decentralized finance (DeFi) during a panel session on Wednesday.They mentioned the recent trending decline in DeFi transactions among institutional investors, which can be attributed to the DeFi industry’s fragmented infrastructure that can be difficult to understand. In order to rekindle investor confidence and interest, the industry must consider the integration of infrastructure and highlight the advantages of DeFi such as low costs, transparency, and liquidity to showcase its potential for financial gain.In a fireside chat on the same day, Jeremy Allaire, Co-founder and CEO of global fintech company Circle, acknowledged yet another mounting challenge facing the industry — the mass adoption of blockchain technology and Web3. However, the solution to this roadblock is not far out of reach, he said. Allaire predicted that by 2025, most cryptocurrencies, including stablecoins — cryptocurrencies that are pegged to a commodity or fiat currency to maintain a stable price — will have a legal foundation, thus paving the way for mass adoption.Suk Hwan Paul Kim, CEO and Vice Chairman of Grip Labs, and Archie Ravishankar, CEO of Cogni, also said that implementing user-friendly services and institutional entry will be a key strategy for persuading Web2 users to transition to Web3 platforms and encouraging mass adoption.Outlook for KoreaMeanwhile, several key figures expressed positive hopes for the pivotal role that Korea will play in the development of the Web3 ecosystem. In particular, Polygon Labs co-founder Sandeep Nailwal and COO Michael Blank pointed out that Korean companies, especially those in the gaming industry, are open to applying Web3 technology to their business projects, thus accelerating next-generation innovation in various fields like gaming, social media, and entertainment. Indeed, Polygon Labs’ own Korean partner firms recognize that the future of the Internet will rely on blockchain technology.In order to build a solid Web3 ecosystem, they said, three core values are of utmost importance — privacy, transparency, and openness. Fostering an environment that users can trust while freely interacting with others is the key, and Polygon Labs has vowed to contribute to doing so.Notably, Commissioner Caroline D. Pham of the US Commodity Futures Trading Commission (CFTC) was also in attendance, where she shared her thoughts on the proper regulation of virtual assets. She stated that it is essential to apply the safety measures we have learned from the past century of financial history to the future cryptocurrency industry, cautioning against a one-sided view that virtual assets are inherently bad.In drawing a comparison between the US and Korea, she stated that although the US possesses strong technical capabilities and is gradually adopting a more positive perspective on virtual assets, Korea is still ahead by a decade due to the fact that the general public is more open to embracing emerging technologies. Therefore, the future partnership between the US and Korea could offer valuable insights, not only in terms of economic prosperity but also in legal and regulatory aspects.

Circle President Heath Tarbert, who oversees the issuer of the USDC stablecoin, arrived in Seoul on Aug. 21 for a series of meetings with South Korean cryptocurrency and blockchain industry leaders, as well as the governor of the country’s central bank. Citing industry sources, local outlet Newsis reported Tarbert visited three major exchanges, Upbit, Bithumb and Coinone, shortly after landing, spending roughly an hour at each. Discussions centered on recent developments in Korea’s digital asset ecosystem.Photo by Daniel Bernard on UnsplashGathering insight from exchangesThe trip underscores Circle’s growing interest in South Korea, one of the world’s largest crypto markets by trading volume despite its heavy tilt toward retail investors. Circle is reportedly seeking on-the-ground insight from local trading platforms. An executive from a research firm said the market offers an attractive foothold for global players looking to deepen networks. Previous reports indicated Circle has also begun informally recruiting in South Korea to support initiatives tailored to the local market, and the company is also weighing a direct investment in a domestic crypto firm. Homing in on stablecoinsStablecoins are expected to dominate the agenda with exchanges. USDC is the world’s second-largest stablecoin by market share, behind Tether’s USDT, and all three exchanges already support USDC trading. Upbit and Bithumb have meanwhile indicated their plans to develop Korean won–pegged tokens, recently filing trademark applications for their projects. Given Circle’s position in the sector, one exchange official said local platforms may look to the U.S.-based company as a benchmark, adding that practical knowledge-sharing could be the most meaningful outcome of Tarbert’s visit. Tarbert also attended a dinner with Simon Seojoon Kim, CEO of crypto venture firm Hashed, whose teams span Seoul, Singapore, Bengaluru, Silicon Valley and Abu Dhabi. Circle and Hashed have been in frequent contact, and the gathering offered another forum to exchange views on recent market developments. Talks with the central bank governorOn the policy front, Tarbert met with Bank of Korea (BOK) Governor Rhee Chang-yong at Circle’s request before the dinner. Rhee has signaled openness to the introduction of won-backed stablecoins, while emphasizing prudential safeguards and noting differences with some lawmakers on potential issuers. The BOK head has previously warned that allowing non-bank entities to issue won-backed stablecoins could pose risks, such as circumventing capital rules. The South Korean central bank is working with other agencies to develop a framework that ensures the stability and utility of stablecoins while preventing their use to bypass foreign exchange controls. The meeting between Tarbert and Governor Rhee likely covered regulatory parameters for cross-border remittances using stablecoins and avenues for public-private collaboration to foster a compliant won-stablecoin market. On the following day, Tarbert is slated to meet executives from four major financial groups: Shinhan Financial Group, Hana Financial Group, KB Financial Group and Woori Bank. Kakao Group, the company behind the KakaoTalk messaging app, is also on the itinerary. Representatives from its mobile payment platform, KakaoPay, are expected to take part in the discussions. The talks come as Kakao recently formed a task force to navigate Korea’s evolving stablecoin rules. Separately, Circle listed on the New York Stock Exchange (NYSE) earlier this year under the ticker “CRCL.” The initial public offering (IPO) priced at $31 a share and opened at $69, raising nearly $1.1 billion. As of Aug. 21, the stock closed at $131.80.