Tether and Circle Engage South Korean Banks as the Country Develops Stablecoin Regulatory Guidelines

South Korea is currently engaged in the global effort to regulate stablecoins. The recent initiatives in the U.S., notably the GENIUS Act and the CLARITY Act, have undoubtedly propelled South Korea towards creating a comprehensive regulatory framework.

Leaders from the top stablecoin providers worldwide, Tether and Circle, arrived in Seoul for discussions with the nation’s financial authorities and regulators.

Reports from local media on 24 August 2025 confirmed that Lee Chang-yong, the Governor of the Bank of Korea (BoK), held talks with Circle President Heath. “Koreans should have the ability to utilize stablecoins in their currency when engaging in digital asset transactions or international transfers,” stated Tarbert.

This unexpected high-level interaction has led to conjectures: Could South Korea emerge as the pivotal center for regulated stablecoin development?

South Korea’s leading Banks are reportedly in discussions with Tether and Circle regarding Stablecoin Collaborations:https://t.co/k5h150NNUc pic.twitter.com/PVCnZPHNuG

— FENERATOR Crypto Strategy (@feneratorcom) August 25, 2025

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Circle President Meets BoK Governor, Tether Adopts Discreet Strategy

As reported by South Korean media, Heath Tarbert, President of Circle, met with the Governor of BoK, representatives from Shinhan Financial Group and Hana Financial Group, as well as leaders from two more prominent banks in the nation – KB Financial Group and Woori Bank. Tarbert also engaged with major crypto firms such as Hashed and Dunamu, which operates South Korea’s largest exchange, Upbit.

“Individuals in Korea looking to buy related goods and services might consider a KRW-denominated stablecoin. If it is adequately regulated, there’s no reason not to pursue it,” remarked Tarbert.

Recently, the BoK declared that stablecoins pegged to the won should be introduced gradually, starting with strictly regulated commercial banks.

Speculation suggests that Circle has already finalized a stablecoin-related agreement with Hana Bank, although this has not been officially verified. Local reports also indicate that Circle is in an informal process to hire staff to oversee the domestic won stablecoin operations.

On the other hand, competitor Tether has taken a more reserved route. CEO Paolo Ardoino is thought to have had discussions with executives from Hana Bank and KB Bank. Noteworthy, USDT makes up nearly 70% of the global stablecoin market and continues to attract Korean investors.

South Korea ranks high among global crypto markets by volume, yet regulatory restrictions hinder access to stablecoins.

Tether has just surpassed South Korea, now holding the 18th largest share of U.S. Treasuries, accentuating the need for regulations that facilitate access to stablecoins. pic.twitter.com/oTgTsmX3O7

— Jacob Wittman (@jakewittman) August 1, 2025

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South Korea’s Political Giants Clash Over Stablecoin Legislation

Last month, the two principal political parties in South Korea revealed competing stablecoin proposals. The ban on interest payments for stablecoins has emerged as the most contentious topic within these bills. Legislators from both the ruling Democratic Party (DP) and the opposition People Power Party (PPP) have introduced measures that could lead to the establishment of won-backed stablecoins.

As per a local news article dated 28 July 2025, “the ruling party contends that interest payments need to be prohibited to avert market turmoil, whereas the opposition faction argues that such payments are essential for enhancing the competitiveness of won stablecoins.”

Each bill illustrates differing views regarding innovation, trading market safeguards, and monetary authority.

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The post Tether And Circle Court South Korean Banks As Nation Prepares Stablecoin Regulatory Framework appeared first on 99Bitcoins.