South Korean Blockchain Leader Warns of Financial Isolation Risks

Why does Kim Seo-joon warn about financial isolation if stablecoin regulations are delayed?

What strategic mistake did Kim Seo-joon compare the stablecoin delay to?

What are the three steps Kim Seo-joon proposes to secure Korea's position in digital finance?


해시드 김서준 대표 “원화 스테이블코인 지연 시 금융 고립 우려”
Image source: Unblock Media
- Kim Seo-joon warns stablecoin delay risks global isolation. - Calls for regulatory reforms to protect financial sovereignty. According to a Coinness report on July 2, 2025, Hashed CEO Kim Seo-joon stated on Facebook that Korea must urgently advance its Won-based stablecoin through regulatory reforms. He warned that a delay could lead to a growing dependency on the digital U.S. dollar and result in global financial isolation, underscoring the need for immediate action as blockchain-based financial ecosystems rapidly evolve. Kim highlighted South Korea’s lagging pace compared to the United States and Europe, as both regions are actively establishing regulations for currency-backed stablecoins to secure dominance in the global market. Kim believes South Korea hesitates due to concerns over capital outflows and exchange rate instability. However, he warned this delay could increase the nation’s reliance on the digital U.S. dollar. He stated that such dependence would erode South Korea’s financial sovereignty and diminish the Korean Won's role in East Asia’s economic landscape. Kim compared the situation to the streaming industry, arguing that avoiding the development of a Korean Won-based stablecoin because of competition from dominant players like USDC is short-sighted. He noted that other countries are already advancing beyond private stablecoins, moving toward tokenized deposits with involvement from institutions like JPMorgan and Citibank—a trend that showcases the transformative direction of global finance. To address this issue, Kim proposed a three-pronged approach: reform the issuance system for Won-based stablecoins, introduce a digital foreign exchange sandbox, and secure international distribution channels for the Korean Won. He emphasized that failing to act decisively would lead to financial isolation, rendering South Korea unable to participate fully in the blockchain-driven digital finance economy. Meanwhile, the domestic environment for stablecoins in South Korea is dynamic yet uncertain. Major firms like KakaoBank have shown interest in developing stablecoins pegged to the Won, reflecting growing optimism in the private sector. However, progress on clear regulatory frameworks has been complicated, as the Bank of Korea has raised concerns about financial instability. In addition, the government and central bank hold differing views on whether non-bank entities should issue stablecoins, although the recent appointment of political leaders who favor the cryptocurrency sector has fueled hopes for resolution and growth. Market data from July 2 at 05:06 UTC shows USDC (USDC) trading at $1. Its 24-hour trading volume changed by -0.015%.
telegram

Get real-time crypto breaking news on Unblock Media Telegram! (Click)

Article Info
Category
People
Published
2025-07-02 05:14
NFT ID
474
News NFT detail
Get the latest news in your inbox!

Recommended News