The "Kimchi Premium" market is facing a regulatory bottleneck. South Korea’s stablecoin bill has stalled due to a dispute over issuer eligibility.
Traditional banks want a monopoly on KRW-pegged stablecoins, while fintech firms are fighting for licenses to compete. This regulatory capture has sidelined billions in institutional capital.
South Korea is a global trendsetter. If they ban non-bank stablecoins, it could hurt the dominance of USDT and USDC across Asia. Conversely, a resolution could unleash a massive liquidity injection.
The next parliamentary session in February 2026 is the key catalyst. Until then, Korean traders must rely on volatile assets for liquidity.
The fight for who controls digital money is reaching a fever pitch in one of crypto's largest markets.
Should only banks be allowed to issue Stablecoins?
#SouthKorea #Stablecoin #Regulation #AsiaCrypto
