Update on KRW Stablecoin: FACTS & THOUGHTS — Part 2 If you missed Part 1, scroll down to the previous post at the bottom 1. Korean Exchanges Are Finally Making Bold Moves One of my long-standing criticisms has been that Korean exchanges are too conservative and hesitant to invest meaningfully in the local crypto ecosystem. That may be starting to change. Bithumb Exchange recently announced a KRW stablecoin competition with a prize pool of KRW 300 billion (~$22 million USD). This kind of capital and opportunity has the power to attract fresh talent and renewed attention — exactly what Korea’s stagnant crypto scene needs. I deeply respect this initiative. IMHO even more surprising is Upbit, Korea’s largest exchange by far, recently launching USDT on Aptos and USDC on Solana — a bold move for an exchange known for its cautious approach. This not only signals a shift in regulatory sentiment, but also suggests that Upbit is actively preparing for the coming KRW stablecoin era. 2. Korea Will Follow Circle’s ($CRCL) Lead At the moment, Korean exchanges, builders, and investors are spreading their bets due to uncertainty around how KRW stablecoin regulations will take shape. That’s expected in an early-stage race. However, if history is any guide, Korea rarely leads on regulation. Instead, it looks to established global frameworks for precedent — and Circle is currently the most credible model. Circle is NYSE-listed, SEC-reviewed, and MiCA-compliant. That makes USDC more favorable in the eyes of Korean regulators compared to USDT, which is not MiCA-compliant (at least not yet). It’s likely Korea will view Circle’s choice of Layer 1s and partners as a vetted, safe template to emulate. 3. Domestic Players Will Lead KRW Stablecoin Issuance Since the 1997 Asian Financial Crisis, Korea has maintained strict capital controls. This means the government will only permit domestic entities to issue and operate KRW stablecoins. Foreign-headquartered companies will likely be excluded, while Korean banks, locally licensed VASPs (Virtual Asset Service Providers), and local well-capitalized technology vendors will be front and center. CONCLUSION: The momentum is real, but the path is still unfolding. Korea’s KRW stablecoin race is heating up — and the players, frameworks, and partners involved today will shape its outcome tomorrow. If you found this useful, pls ❤️ + 🔄 + FOLLOW for more updates.