Summary

  • Seo Dong-joo said South Korea does not need to design its virtual-asset regulations to match those of the U.S. and should make them more flexible to fit the local market.
  • He said Korea should ride the trend of already widespread dollar stablecoins and look for opportunities in an established market.
  • He said allowing nonresident foreigners access to the market through domestic exchanges could give platforms more room to operate, and that if regulatory changes are delayed, other countries could seize the market first.

Forecast Trend Report by Period

"If the response is delayed, other countries may seize the market first"

Seo Dong-joo, a U.S. lawyer, said South Korea does not need to model its virtual-asset regulations on the United States. Instead, he said, Korea should respond to the spread of dollar stablecoins with a more flexible framework tailored to its own market.

Speaking at D-CON 2026 at the Fairmont Ambassador Seoul in Yeouido on Nov. 10, Seo said the Korean and U.S. markets differ fundamentally. Laws and regulations do not need to be identical, he said, adding that there are areas where Korea should be more flexible.

He also said the U.S. still lacks legal clarity in many areas, with debate over the Clarity Act continuing. For that reason, he added, he would not characterize Korea as simply being too late.

Seo also said Korea should seek opportunities in an established market rather than compete head-on with dollar stablecoins. Dollar stablecoins are already widely used and supported by a strong foundation, he said, and Korea should ride that trend.

Explaining the potential uses of stablecoins, Seo cited his experience working on a project related to the United Nations Development Programme. The work involved designing a system to pay healthcare workers in Venezuela in stablecoins.

There was a request to pay employees in stablecoins because trust in the local currency was low, he said. To prevent indiscriminate payments, the system was designed to verify employee identities and check information through smart contracts before funds were disbursed.

Seo also stressed the need to expand foreign participation in local exchanges. Referring to an earlier discussion that proposed allowing nonresident foreigners to access the market, he said opening trading to foreign participants could give exchanges more room to operate.

He added that regulatory reforms should move quickly as perceptions of virtual assets continue to change. If the response is too slow or not flexible enough, other countries could move first and capture the market, he said.

Doohyun Hwang