Revealed at virtual asset policy conference
"Competition with traditional financial institutions is both a threat and an opportunity"
"Dunamu is ready for tokenization and stablecoins"

Dunamu co-founder and Vice Chairman Kim Hyeongnyeon expressed reservations about the competitiveness of won-denominated stablecoins. If dollar stablecoins offer interest rewards, such as rewards programs, there will be less incentive to convert them into won. He also voiced concern that the use of the dollar will accelerate if dollar stablecoins enter South Korea under the stablecoin regulatory legislation set to take effect next year.

Speaking at the “D-CON 2026” virtual asset policy conference held at the Fairmont Ambassador Seoul in Yeouido, Seoul, on the afternoon of November 10, Kim said, “There are many ideas related to won-denominated stablecoins, but to be honest, I personally think they are rather idealistic.”

Kim took part in a discussion on virtual assets with Democratic Party of Korea lawmaker Min Byung-deok and People Power Party lawmaker Park Soo-min during a session titled “Challenges and Solutions for Becoming a Leading Digital Asset Nation,” moderated by economic and current affairs YouTuber Shuka World. He said that even if won-denominated stablecoins are introduced, dollarization is likely to accelerate because dollar stablecoins pay interest in the form of “rewards.” Dollarization refers to the formal or informal use of the U.S. dollar in place of a country’s own currency.

Dunamu Vice Chairman Kim Hyeongnyeon shares his views on digital assets at D-CON 2026, a digital asset policy conference held at the Fairmont Ambassador Seoul in Yeouido, Seoul, on the afternoon of the 10th. Dunamu

“Stablecoin issuers in the United States are already knocking on the doors of Korean exchanges, saying they will pay interest,” Kim said. “I’m concerned that dollarization could intensify when the GENIUS Act takes effect next year and dollar stablecoins begin circulating in earnest, as individuals will hold dollar stablecoins in their wallets and earn interest on them.”

He said won-denominated stablecoins were similar to deposits held at virtual asset exchanges and emphasized that Dunamu already has the technology needed for them. “Like securities firms, Dunamu also holds customer deposits, and stablecoins are not that different from deposits,” he said. “If we add just a little technology to what is already feasible in practice, those deposits can readily be converted into stablecoins.”

Asked about traditional financial institutions entering the virtual asset market, he said it was both a threat and an opportunity. “It is definitely a threat,” Kim said, adding, “But, as has always been the case in times of crisis, I believe there are opportunities.” He also emphasized cooperation with financial institutions that have acquired stakes in Dunamu. “Several financial institutions have acquired stakes and are researching what we can do together in the virtual asset market. We plan to enter various business areas through regulatory sandboxes,” he said.

At the D-CON 2026 virtual asset policy conference held on the afternoon of the 10th at the Fairmont Ambassador Seoul in Yeouido, Seoul, economics and current affairs YouTuber Shuka World (from left), Min Byeongdeok of the Democratic Party of Korea, Park Sumin of the People Power Party, and Kim Hyeongnyeon, vice chairman of Dunamu, discuss virtual assets. Dunamu

Kim expressed regret that tokenized shares of companies such as Samsung Electronics and SK hynix are traded on overseas exchanges. “It is deeply regrettable that Samsung Electronics and SK hynix, two of Korea’s leading stocks, are traded on overseas exchanges,” he said. “Financial institutions, securities firms, and other players are fully prepared on the technology front, but regulations make things difficult. From our perspective, it is extremely frustrating that people overseas can trade and use leverage on Korean stocks.”

He said allowing foreign investors to trade could take South Korea’s virtual asset market to the next level. “Product diversity is important, but if nonresident foreign investors could freely trade virtual assets, just as they bring in dollars, convert them into won, and buy Korean stocks, I believe that would create the conditions for the market to take a leap forward,” he said.

Finally, Kim said, “If the right institutional framework is put in place, we will do our utmost to become a global player representing Korea.”

Meanwhile, lawmakers who took part in the discussion said that passing the Digital Asset Basic Act and abolishing regulations were necessary to develop the virtual asset market. “The issues of who can issue won-denominated stablecoins and limits on major shareholders’ stakes in exchanges are issues that do not exist in any other country in the world,” said Min Byung-deok. “The passage of the bill is being delayed over unnecessary issues. Rather than trying to cover everything in the law, we should pass it and establish guidelines so that creative ideas can be put into practice.”

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Park Soo-min said that, rather than making the basic law overly detailed, the authorities should first issue an administrative declaration. He said that simply declaring that businesses would not be punished if they complied with requirements such as anti-money laundering rules could ease the industry’s subdued sentiment. He also called for fully allowing corporations and institutional investors to invest in virtual assets and abolishing the “one exchange, one bank” rule.

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