On August 21, 2025, Heath Tarbert, Circle’s top legal and business officer, touched down in Seoul and went straight to Upbit, Bithumb, and Coinone, spending exactly 60 minutes at each exchange with their CEOs. By dinner he was at a table with Hashed’s Kim Seo-joon, and yesterday’s jetlag was gone by breakfast when he was in front of the Bank of Korea’s governor and four of the country’s largest financial groups.
This rapid-fire agenda shows how stablecoin firms now have to dance through Korea’s complicated crypto scene.
The Three-Exchange Rule
In Korea’s market, a single exchange partnership isn’t enough. The big three run a de facto triopoly: Upbit commands about 80% of volume, but Bithumb and Coinone still shape pricing and keep regulators in the loop.
Circle was reminded of a lesson Tether learned the hard way: Korean exchanges cooperate much more than they compete when it comes to stablecoin pairs. When one compliance team gets an agenda, the others are on the phone. A simultaneous meet is the only way to control the message.
The one-hour meeting length isn’t random. It’s long enough to discuss the core business but short enough to seem neutral toward any one exchange. Korean crypto media watch these slots like a hawk—when the guests land, how long they stay, even which executive hallway the meeting is in.
Why the Bank of Korea Met First
Tarbert’s chat with Governor Lee Chang-yong was Circle’s idea, but the calendar choice was deliberate. In Korea, the central bank’s tone drives what commercial banks do, especially when dollar-pegged stablecoins come into play.
Regulators here fear dollars slipping out through stablecoins. The won-dollar rate is the lever for everything in this market. By seeing the central bank first, Circle went straight to the hot button: USDC will not become a secret way to dodge Korea’s tight forex rules.
Only after the Bank of Korea's sign-off did Circle sit down with Shinhan, Hana, KB, and Woori. Each of those banks already knew the central bank’s take. In Seoul’s layered finance culture, that order is the order of the day.
The Win-Win Game: What Each Side Gets
What Circle gains from Korean exchanges:
- Direct KRW-USDC trading pairs
- Access to Korea's retail crypto investors
- Gateway to broader Asian markets
- Regulatory precedent for stablecoin operations
What Korean exchanges gain from Circle:
- Release from USDT dominance
- Credibility of U.S. regulatory compliance
- Seamless DeFi ecosystem connectivity
- Edge for 2026 regulatory discussions
What Korean banks gain:
- Ready-to-go stablecoin infrastructure
- Fresh revenue from custody and settlement
- Foot-in-the-door advantage in digital assets
- Risk hedged through regulated competitors
The Hashed Connection: More Than Just Dinner
Dinner with Hashed’s CEO was not just for conversation. Hashed has become Korea’s unofficial diplomatic arm in crypto. They back nearly every major global project and keep open lines with regulators, exchanges, and the older banking sector.
Sitting with Kim Seo-joon tells the Korean market Circle respects local customs. Hashed goes beyond checks: they translate culture, clear regulatory fog, and pass you to the right person at the perfect minute.
Rumor has it, Korean insiders quietly note the Hashed meeting likely set the whole Seoul tour weeks earlier.
The KODA Angle No One Is Pushing Hard Enough
In recent strategy huddles, the talk keeps circling back to KODA, Korea's lone licensed crypto custodian. Foreign firms face a wall—no local partner, no custody. Period. Without KODA, or a custodian with the same licenses, Circle’s plan to pump USDC into this market stays at “nice idea” status. But KODA can’t scale its custody rails without anchor clients. This keeps the KODA-power Circle loop tight, pumping quiet deal-making energy into every Seoul crypto room.
2026 Korean Stablecoin Rules: Stop Watching the Clock, Start Counting the Steps
The FSC’s 2026 road map for stablecoin rules is a lock, and the draft already reads like a J-Circle Rail: full fiat reserves, monthly audits, and custody enforced on local turf.
Expect this playbook:
- 100% fiat reserves, locked at Korean banks.
- Real-time proof of reserves, no hiding.
- Licenses for KRW-pegged stable tokens.
- User fund insurance, tight and traceable.
- Foreign issuers must spin a local subsidiary.
Circle’s 2023 moves—bank anchors, exchange hooks, custody rails—are a rehearsal, not a flight of fancy. When the rules drop, everything is already wired, and market-first grabs the market. The 2021 Travel Rule taught Korean exchanges that quick compliance pays first prize, and the playbook is already in Circle’s playbook.
The 2026 deadline is why Circle chatted with all four major banks. If the draft rules become final, Circle’s stablecoin reserves will need to be parked at several Korean banks. No single bank can hold all the risk.
What the market might look like in 2026-2027:
- KRW stablecoin market could hit ₩10 trillion
- Offshore stablecoins can snag a maximum 30% of the market
- Bank-issued stablecoins likely to roll out
- DeFi Protocols will need Korean licenses to operate
The party that builds the technical standard today, before the rules drop, gets to draft the playbook. Circle gets it. Korean exchanges get it. The banks are just starting to catch on.
Seoul’s crypto scene is a bit like a cozy village, even with billions in daily trading. Everyone knows everyone, gossip travels in seconds, and walking into a meeting beats a Zoom call every time.
This article is for educational and informational purposes only and should not be considered as financial, investment, or trading advice; always conduct your own research and consult with a qualified financial advisor before making any investment decisions.