Tether and Circle Engage with South Korean Banks Amid Regulatory Developments

According to Cointelegraph, leading stablecoin issuers Tether and Circle are set to engage in discussions with top executives from South Korea's largest banks this week. The meetings aim to explore potential partnerships, the issuance of Korean won-backed stablecoins, and the distribution of US dollar-backed stablecoins within South Korea. Executives from South Korea's four major financial groups, including Shinhan Financial Group CEO Jin Ok-dong and Hana Financial Group CEO Ham Young-joo, are expected to meet with Circle president Heath Tarbert. Additionally, Young-joo is scheduled to meet a Tether official. KB Financial Group's chief digital and information technology officer Lee Chang-kwon and Woori Bank president Jeong Jin-wan also plan to meet with Circle's Tarbert. These banks are part of South Korea's "Big Four," designated as domestic systemically important banks by the Financial Services Commission. This development comes as South Korea prepares to introduce a regulatory framework for a won-backed stablecoin. The Financial Services Commission is expected to unveil the bill as part of the second phase of the nation's Virtual Asset User Protection Act. Earlier reports indicated that shares of at least three major South Korean banks surged following the filing of trademarks for stablecoins. Additionally, the banking arm of South Korean IT giant Kakao Corporation announced plans to actively participate in the stablecoin market. South Korea's focus on stablecoin regulation follows the suspension of the country's central bank digital currency (CBDC) tests in late June, shifting attention to supporting won-backed stablecoins. Prior to this, eight major South Korean banks were planning to collaborate on launching a stablecoin pegged to the local fiat currency by next year. The meetings in South Korea are part of a broader series of high-level engagements by Tether and Circle as global regulators work towards clearer rules for stablecoins. In early March, Tether CEO Paolo Ardoino and Circle's Tarbert attended a Commodities Futures Trading Commission (CFTC) CEO forum in Washington, D.C., hosted by Acting Chair Caroline Pham. The event included participation from at least 22 crypto executives and two White House representatives. This followed mid-February reports of Tether engaging with US congressional lawmakers to help shape stablecoin regulatory policies. The US Treasury Department has since requested comments related to the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. Tether has also signed agreements with governments in Guinea and Uzbekistan to explore blockchain and peer-to-peer payment adoption. In January, the company announced plans to relocate its operations to El Salvador after several meetings between Ardoino and the country's president, Nayib Bukele.