South Korea plans to have banks lead the issuance of stablecoins for the Korean won, with exchanges and payment platforms vying for the circulation market.

South Korea's draft "Digital Asset Basic Law," expected to be released this month, proposes that a bank-led consortium issue a stablecoin in the Korean won. With banks responsible for issuance, exchanges and third-party payment platforms will handle the circulation process connecting consumers and merchants, making user access and application scenarios key areas of competition. The integration of Upbit's operator Dunamu's business with Naver Financial could be a significant variable. If the services are approved, Dunamu could generate revenue through stablecoin trading, while Naver Financial could collect fees through merchant payments and settlements. South Korean financial regulators have pointed out that if stablecoins are used for electronic payments, related businesses must comply with the Electronic Financial Transactions Act, which clearly defines obligations regarding the protection of deposit and settlement funds, transaction information management, and dispute resolution. (Source: zdnet)