Wonhwa Coin: Clear Regulatory Framework First... Focusing on US and European Cases

"Wonhwa Coin: Clear Regulatory Framework First... Focusing on US and European Cases"

Financial Services Commission: "Policy discussions through a consultative body with the Ministry of Economy and Finance and the Bank of Korea"

A proposal has been made that a clear regulatory framework, similar to those in the US and Europe, must be established to build a Wonhwa stablecoin ecosystem.

David Allan Katz, Vice President of Strategy and Policy for Asia Pacific at Circle, stated at a seminar titled 'Future Governance and Market Ecosystem Establishment for Wonhwa Stablecoins through Overseas Cases,' held at the National Assembly Members' Office Building in Yeouido, Seoul, on the 29th, "Only with clear and explicit legislation can the stablecoin economy and ecosystem develop healthily."

Vice President Katz explained, "Circle is already subject to many regulations, including the Genius Act, and is recognized as a US federal bank after receiving approval from the US Office of the Comptroller of the Currency (OCC)."

He further predicted, "Stablecoins offer significant advantages when utilized for speed and trade efficiency, escrow payments, or accounts receivable management," adding, "Korea, with its large trade volume, can benefit from these strengths."

Jan Oliver Sell, CEO of Kyvalis, a Euro stablecoin consortium involving 37 European banks, emphasized, "Europe has provided a single binding regulation since 2024," and "Seamless legislation can foster the ecosystem."

CEO Sell pointed out, "Currently, 98% of stablecoin transaction volume is in dollars, and I believe that a liquid and trusted Euro stablecoin is necessary to become a major financial instrument," adding, "The same situation applies to Wonhwa."

He also mentioned that Europe is creating an ecosystem where deposit tokens and stablecoins coexist.

Ryu Chang-bo, President of the Open Blockchain Artificial Intelligence Association (OBDIA), conveyed the atmosphere, saying, "In Korea, the roles related to stablecoins do not seem to be neatly divided," and "Banks are also preparing wallets, and platforms want to handle international remittances and on/off-ramps."

He added, "Rather than which model Korea adopts, designing an ecosystem suitable for the domestic environment is important."

Yoo Won-gyu, an official from the Financial Services Commission, stated, "The fundamental principle in the US and Europe is that stablecoins must be able to claim redemption based on their reserve assets, and a clear regulatory framework is necessary for stable operation accordingly," adding, "The Financial Services Commission, the Ministry of Economy and Finance, and the Bank of Korea plan to form a consultative body to closely discuss related policies and advance legislative proposals."

Kim Young-seok, CEO of Bonanza Factory, said, "While regulating who creates stablecoins and how is important, it is also necessary to discuss where they should not be used," and "If they are used for drugs or gambling immediately after creation, they will inevitably face criticism, so safeguards must be established from the beginning."

Kang Hyun-gu, a lawyer at Law Firm Kwangjang, said, "Europe is ensuring predictability through regulatory clarity, and the US is building a specific ecosystem using the private sector-led Circle," adding, "Research tailored to the domestic context is needed to determine the extent to which stablecoins can be utilized in Korea."