South Korea is getting ready for big changes in its crypto regulations, and a major player just made a move. BDACS, a digital asset custodian, teamed up with Woori Bank (one of the country’s biggest banks) to launch KRW1, the first stablecoin pegged to the South Korean Won (KRW). It’s running on the Avalanche blockchain.
KRW1: A Pilot Program with Big Potential
KRW1 is currently in a test phase, but it’s already showing promise. Each KRW1 token is backed by a real Korean Won held securely in Woori Bank. BDACS has big plans for it, envisioning KRW1 as a cheap and efficient payment system for government programs like emergency aid. They also see it as a potential standard for stablecoins in South Korea, especially with new regulations on the horizon. The company even developed a user-friendly app for peer-to-peer transfers and transaction verification. BDACS’s CEO, Harry Ryoo, sees KRW1 as a crucial step in building a robust digital asset market.
The Race to Regulation
The launch of KRW1 comes just before South Korea’s Financial Services Commission (FSC) is expected to release its long-awaited rules for won-backed stablecoins – sometime in October. There’s been a lot of activity in the National Assembly, with multiple bills proposed on how to regulate these stablecoins. The banking sector is also involved, with some of the biggest banks reportedly talking to major stablecoin companies like Tether and Circle about potential partnerships. There’s still some uncertainty about whether non-bank companies will be allowed to issue stablecoins.
