In short
- Earlier this month, Kaia registered four WFD-related trademarks; Kakao and Kakao pay in his board of board.
- Competitive accounts and an administration framework would lay down rules for licenses, reserves, stock requirements, interest treatment and the roles of banks.
- Fair controls and planned reporting for cross-border crypto flows can limit early use cases, compared to dollar-based stablecoins, Decrypt was told.
South Korean Internet Conglet Kakao prepares a Korean (WFD) Stablecoin on the Kaia Blockchain, after registering new trademarks and insisting on Digital KRW in its product ecosystem to meet the increasing demand for faster payments, remittances and chain scheme.
Kaia, who operates the public blockchain formed from the merger of Klaytn and Finschia, announced with Decrypt That it had registered the “KRWGLOBAL”, “KRWGL”, “KRWKAIA” and “Kakrw” trademarks with the Korean Intellectual Property Office earlier this month.
With Kakao and Kakao pay in his Governance Council, Kaia throws a won token like a bridge to USD and JPY-stundled Stablecoins.
Users and companies in the Kakao ecosystem, the company says that has already served more than 49 million monthly active users in South Korea, will “gain access to Defi protocols within mobile apps that are used nationally, which bring these decentralized financing projects to life”, Dr. ir. Sangmin SEO of the Kaia, told Decrypt.
Nevertheless, the stabilecoin legislation in South Korea in Flux, with competitive accounts and a framework conducted by the administration, still continues to discuss.
Earlier in June, the administration sketched A digital assetabasis act with which qualified companies can issue won tokens if they meet minimal equity requirements.
The Bank of Korea, meanwhile, suggested Starting with banks issued stablecoins in the beginning And studies deposit lives on public chains.
At the end of last month, the prevailing and opposition parties of Zuid -Korea Submitted competing Stablecoin accounts. They split off whether they should allow interest on stablecoin deposits, while matching the full reserve support and emergency powers for regulators.
However, the challenge for KRW Stablecoins is “the lack of clear, mandatory use cases compared to Dollar Stablecoins”, Min Jung, senior analyst at quantitative trading company Presto said Decrypt. “More research is needed to identify and develop practical applications.”
The strict capital controls of Zuid -Korea also make it crucial to understand how these regulatory obstacles would be tackled, “he added.
“Since the actual value of stablecoins lies in reducing friction, especially with cross -border payments instead of purely domestic use, these capital control issues must be carefully considered,” Jung said.
South Korea still has a regime for foreign exchange control under the DeviezRansactie ActWith capital transactions subject to individual procedures, documentation thresholds for overseas transfers and restrictions on the use of offshore.
The government is planning to demand companies in the sector that they register and submit monthly reports to its central bank according to a 2024 monthly reports at the second half of 2025 report by Reuters.
To this end, “KRW Stablecoins not only means the issue of digital currencies, but also means that the Korean market legalizes digital asset-driven companies,” said SEO.
Kakao claims that his network has almost universal reach, with more than 95% of the population that already uses it for messages, payments and online banking.
Nevertheless, important decisions about stablecoins in the country remain awaiting, which means that any launch won by Kakao or rivals will decrease on definitive rules for licenses, reserve requirements, interest treatment and the role of banks in issue.
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