Dr. Sangmin Seo, Chairman of the Kaia DLT Foundation, has challenged South Korea’s current regulatory approach to stablecoins, describing the preferential treatment of banking institutions as fundamentally flawed. In a recent industry address, Seo emphasized that the Bank of Korea must establish comprehensive regulatory frameworks that create equal opportunities for both traditional financial institutions and emerging fintech companies to issue digital stable assets.
The current system, which prioritizes banks in stablecoin issuance, fails to recognize the evolving nature of digital finance and potentially stifles innovation, according to Seo’s analysis. He argued that a more inclusive regulatory environment would foster healthy competition while maintaining financial stability through proper oversight mechanisms.
Seo’s comments highlight growing concerns within South Korea’s blockchain sector about the need for regulatory clarity. Market participants have been awaiting definitive guidelines from financial authorities that would provide a clear path for stablecoin development while ensuring consumer protection and systemic risk management.
The Kaia DLT Foundation chairman’s position reflects broader industry sentiment that South Korea risks falling behind in the global digital asset race without modernized regulatory frameworks. His call for balanced regulation comes as international standards for stablecoin oversight continue to evolve, with major economies developing their own approaches to managing these emerging financial instruments.
