Tether, Anchorage Seek Entry into South Korea's Institutional Market: National Assembly Discusses Stablecoin Regulation

# South Korea Advances in Stablecoin Regulation Amid Global Focus on Financial Infrastructure As stablecoins emerge as pivotal components of financial infrastructure, South Korea has embarked on establishing comprehensive regulatory frameworks. The Democratic Party of Korea recently announced the upcoming "Digital Asset Basic Act," which outlines requirements for licensing systems, reserve mandates, and capital thresholds for issuers. A recent global seminar at the National Assembly featured discussions with international industry leaders, including Tether and Anchorage Digital, aimed at shaping the nation’s regulatory approach. On October 20, the National Assembly convened a seminar with global experts to deliberate on stablecoin regulation pathways. Led by Democratic Party Representative Kim Byung-gi, the event underscored stablecoins' significance beyond digital assets, portraying them as future currency tools linked to monetary sovereignty. Addressing financial stability post the Terra-Luna collapse, Kim emphasized the need for regulations involving central bank-private issuer collaborations, reserve standards, institutional involvement, and licensing protocols. He assured that insights from this seminar would inform upcoming legislative decisions. The seminar included notable participants like stablecoin issuer Tether, digital asset trust bank Anchorage Digital, asset manager Franklin Templeton, and financial data provider Bloomberg. These entities shared their views on South Korea’s market evolution and provided policy suggestions. # Tether: Promoting Stablecoins in South Korea's Financial Framework Andres Kim, Institutional Head at Tether, highlighted South Korea's cultural impact and global links. He suggested that introducing stablecoins could stimulate growth in tourism and cross-border remittance sectors within South Korea. Kim stressed the integration of stablecoins into the financial system to bolster industry growth and investor protection. Kim emphasized Tether’s anti-money laundering (AML) measures and collaboration with global enforcement agencies, noting that regulated stablecoin adoption in South Korea could mitigate financial risks. # Anchorage Digital: Insights from the U.S. Regulatory Landscape Sergio Mello, Stablecoin Chief at Anchorage Digital, shared experiences on securing a digital asset trust bank license from the U.S. Office of the Comptroller of the Currency (OCC). Mello highlighted the firm's tech-centric approach and focus on institutional asset security, extending traditional finance safety standards to digital assets through regulatory collaboration. Mello identified three crucial factors for stablecoin security: reserve quality, liquidity, and redemption mechanisms. He also noted that digital assets face unique risks like transaction irreversibility and wallet storage vulnerabilities, stressing the need for robust institutional frameworks. He called for cooperation between South Korean and global financial institutions to establish technical and regulatory stability foundations, warning that regulatory gaps could push businesses to relocate or attract unregulated entities, jeopardizing South Korea’s financial system competitiveness. # Franklin Templeton and Bloomberg on Institutional Investments and ETFs As direct institutional investments in digital assets and the introduction of digital asset exchange-traded funds (ETFs) gain traction, Franklin Templeton and Bloomberg shared their perspectives. Andrew Crawford, Vice Chair of Franklin Templeton's Digital Division, highlighted ETFs' benefits in enhancing retail investor access and promoting market transparency. He suggested key policy directives for South Korea, including ETF legalization, political and regulatory support, and strengthening independent financial oversight. Bloomberg stressed the importance of transparency and liquidity management for ETF adoption. Michael Elko, Head of Bloomberg’s Digital Division, advocated leveraging South Korea’s existing regulatory frameworks, including traditional finance disclosure norms, to ensure a smooth digital asset transition. Elko stressed that digital assets should adhere to the same liquidity and disclosure standards as other asset classes. He noted that with globally fragmented liquidity in assets like Bitcoin(BTC), benchmarks reflecting the most liquid institutional-grade assets are essential. South Korea's legislative and regulatory advancements suggest an active role in defining global stablecoin and digital asset standards. As policymakers and industry leaders work together, the country aims to establish itself as a significant player in the evolving financial technology landscape.