Circle, the company behind the stablecoin USDC, thinks South Korea could actually benefit from taking a careful, measured approach to new crypto laws. Instead of being the first to regulate, they believe a ‘second-mover’ strategy – learning from what other countries do – could be advantageous.
Dante Disparte, Circle’s Chief Strategy Officer, believes Korea can learn from other leading countries when creating new regulations. In a recent report, he suggested that by examining successful frameworks already in place elsewhere, Korea can build rules that both encourage innovation and provide necessary oversight. Essentially, Korea has a chance to create a strong regulatory system by combining the best aspects of existing ones.
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Circle’s strategic Korea expansion
These statements followed Circle’s recent agreements with several South Korean companies – Kakao, Kakao Pay, Kakao Bank, Toss, and Toss Bank – to work together on developing stablecoin technology.
Circle believes that stablecoins and financial technology companies can help each other grow by increasing the use of digital payments and financial services. Jeremy Allaire (Disparte) explained that digital currencies need new, updated financial systems – they shouldn’t be built on top of old ones.
From my perspective as an analyst, it’s clear you can’t just add new financial technology to outdated systems. True progress in areas like digital finance requires a deep connection and seamless operation with existing payment infrastructure – it needs to be built *with* those networks, not simply layered on top.
Lessons from the U.S. and Europe
Disparte highlighted the United States, the European Union, and the United Kingdom as places that have already begun to regulate cryptocurrency.
The U.S. began working on rules for payment stablecoins last year with the GENIUS Act. Meanwhile, the European Union has already put in place detailed licensing rules for companies dealing with crypto through its Markets in Crypto-Assets (MiCA) framework.
The UK has updated its cryptocurrency rules in 2024. The Financial Conduct Authority (FCA) has established new regulations for digital assets designed to both safeguard consumers and encourage growth in the industry. These rules will officially go into effect on October 25, 2027.
Disparte suggested that instead of simply imitating one existing system, South Korea could create its own approach by blending the best parts of the U.S. and European models, all while adapting the rules to fit its specific financial landscape.
As rules for stablecoins are created, South Korea and the United States may increase their collaboration in the area of digital finance.
Stablecoin infrastructure cannot wait
Disparte recognized that laws can be slow to develop, but emphasized the importance of continuing to embrace new technologies.
He explained that the rise of AI agents capable of making payments with stablecoins highlights the growing need for strong digital payment systems. Disparte believes that waiting to develop this technology could put countries behind, even if rules and regulations are established later.
He stated that if Korea adopts regulations aligned with global standards, like the GENIUS Act, it could serve as an example for other Asian countries.
Why it matters
Circle’s recent statements coincide with increasing global efforts to regulate stablecoins. Governments in the U.S., Europe, Hong Kong, Japan, and throughout Asia are developing new rules to integrate these digital currencies into the traditional financial framework.
In South Korea, even though laws regarding stablecoins are still being debated, Circle’s collaborations with companies like Kakao and Toss indicate these major players are preparing for future growth in the country’s digital financial sector.
If new rules are approved, these deals could speed up the use of trustworthy digital payment options—specifically stablecoins—within the growing financial technology industry nationwide.
2026-07-23 12:21