Doohyun Hwang

Cryptocurrency (crypto) exchange Gemini has listed on the U.S. Nasdaq. Through this initial public offering (IPO) led by the Winklevoss brothers, Gemini succeeded in raising $425 million and achieved a successful launch. According to Bloomberg on the 11th (local time), Gemini set the offering price at $28 per share and sold about 15.2 million shares. That price exceeded the initial target range ($24~26). Although the offering size was capped at $425 million due to strong demand, subscriptions recorded double-digit multiples, making it a success. Gemini chose a distinctive strategy for allocating IPO shares. Up to 30% of the total was allocated to retail investors through individual investor platforms such as Robinhood, SoFi, and Webull. It also allocated up to 10% to long-term customers, employees, and acquaintances, emphasizing a 'user-friendly IPO.' Nasdaq also decided to purchase $50 million worth of shares at the offering price as a strategic investment. Gemini was founded in 2014 and currently holds assets of more than $18 billion. In addition to operating an exchange, it offers various services such as issuing dollar-pegged stablecoins, digital asset custody, staking, and cryptocurrency reward credit cards. However, according to the filing submitted before the listing, it recorded a net loss of $282.5 million in the first half of this year. The deficit widened to more than six times the net loss in the same period last year ($41.4 million).

Bithumb said on the 12th that it participated in the 'Recruitment Fair for University Students', a side event of the 'International Conference on Climate Risk Management in the Financial Sector' held on the 11th at the ECC Hall of Ewha Womans University. The fair was co-hosted by the Financial Supervisory Service and Ewha Womans University, and a total of 18 major financial firms, including virtual asset exchanges, participated to provide recruitment information. At the event, Bithumb presented recruitment information and job introductions, operated a consultation booth, and held one-on-one interviews with students. Attending students had time to ask and answer questions directly about Bithumb and the virtual asset industry as a whole. Visitors to the booth were given large popcorn and specially made goods, which received a positive response. A Bithumb official said, "We were impressed by students' high level of understanding of virtual assets and their strong interest," adding, "We will develop into a dynamic and sustainably growing exchange by recruiting young talent."

Dunamu, which operates the virtual asset (cryptocurrency) exchange Upbit, released a brand campaign video with world-class esports player 'Faker (Lee Sang-hyeok)' on the 12th. The slogan of this campaign is 'Korea's assets, Korea's digital asset exchange Upbit'. The video conveys the core message 'Our challenge becomes the world's standard.' Upbit has set the standards of the digital asset industry based on trust and technology, and Faker has become a symbol of esports through challenge and achievement. Although from different fields, it is meaningful that the journeys of these two entities, which have become global leaders beyond Korea in their respective fields, were combined into a single video. In fact, Upbit completed the country's first virtual asset business operator registration, establishing standards for settling into the regulatory system and securing industry trust. Earlier this year it announced participation as the official sponsor of the '2025 League of Legends Champions Korea (LCK)' and has expanded its touchpoints with esports fans. To commemorate the campaign release and official sponsorship, Upbit is holding an 'LCK finals ticket event' for members until 5 p.m. on the 17th. It offers an opportunity to directly attend the LCK finals held on September 28 at Inspire Arena in Yeongjongdo, Incheon. The event is conducted in three ways: △new member registration △trading of 100,000 won or more △bonus events. New registrants who complete customer verification and apply on the event page will be entered into a draw to receive tickets. Both existing and new members who achieve a combined trading amount of 100,000 won or more will be eligible for the draw. In addition, some entrants will be given backstage tours and skybox viewing tickets. Winners will be notified individually via Upbit AlimTalk on the 19th. An Upbit representative said, "This brand video with Faker concisely shows the spirit of challenge and the value of trust that Upbit pursues," and added, "We will continue to present new standards as a leader that leads the global digital asset market beyond Korea."

Dunamu, the operator of Upbit, the country's top virtual asset exchange by market share, appears to be preparing a new blockchain business called 'GIWA'. According to foreign media on the 9th, Dunamu is preparing to launch an Ethereum (ETH)-based Layer 2 called the 'GIWA Chain'. In fact, Dunamu recently opened a dedicated website, 'giwa.io', and started a countdown. It has also filed a trademark for 'GIWA' and completed brand registration. However, the specific nature of the chain has not yet been disclosed. Some suggest that the 'GIWA Chain' could be a chain optimized for Korean won stablecoin transfers. This is because Dunamu previously announced plans to enter the stablecoin business in cooperation with Naver Pay. At the time, a Dunamu official said, "Led by Naver Pay, Dunamu will participate as a technology and infrastructure cooperation partner," adding, "We plan to finalize specific cooperation measures as relevant laws and systems are completed." But such reports remain at the rumor stage for now. The specific business direction is expected to be revealed at Dunamu's global blockchain conference 'UDC 2025', which opens at 9 a.m. that day.

Song Ho-geun, Vice President of Kakao Bank, said, "Stablecoin is a technology that will bring innovation to finance," and emphasized that legislation and ecosystem development should be expedited. Song said at the forum "Won-denominated Stablecoin, Opening the Future of Financial Innovation," held on the 8th at the Financial Investment Association in Yeouido, Seoul, that "since the domestic user base for virtual assets (cryptocurrencies) is broad, won stablecoin (wonsco) will also spread quickly." He explained, "The current domestic virtual asset market has large demand to handle trading, overseas remittances, and holding dollar-denominated assets with USDT and USDC," adding, "If wonsco emerges, it can sufficiently replace that area." He went on, "To support this, wonsco listings should be supported not only on major domestic exchanges but also on overseas exchanges," and pointed out, "In particular, since the domestic market lacks a market-making and liquidity provision (LP) industry, it is necessary to foster an LP ecosystem that can maintain the peg (1:1 value linkage). If the peg breaks, it is difficult to restore trust." Regarding overseas remittances, he emphasized the effect of procedural simplification. Song said, "The existing method that goes through SWIFT and correspondent banks involves high costs and time burdens, and refunds are delayed when problems occur," adding, "The structure can be simplified by exchanging wonsco for dollars and transferring between wallets. However, it is necessary to clearly define regulations such as the timing of customer identification (KYC)·anti-money laundering (AML) checks and reporting for foreign exchange transactions." He predicted that merchant payments are realistically at a 'bridge stage.' He said, "It is difficult to replace the existing payment network all at once," adding, "Initially, by connecting stablecoins in the form of a gateway, fees can be reduced to less than half and settlement cycles shortened. Over time, the intermediate step will be reduced and the structure will evolve toward near-instant payment." He also suggested applicability to local currencies and purpose-specific payments. Song said, "Instead of the current system, which is slow due to individual issuance and execution by local governments, rapid execution is possible with purpose-specific stablecoins," explaining, "For example, tailored vouchers for disaster- and drought-stricken areas can be distributed immediately." He also said, "Like the income tax deduction for credit card use, expansion of local currencies can be promoted through initial incentive designs for users and merchants." He added, "Just as artificial intelligence (AI) is changing everyday life, stablecoins will change the financial infrastructure itself," and added, "Korea is late, but now is the starting line. If a system that balances innovation and stability is prepared quickly, we can leap forward as a 'sovereign (national sovereignty-type) stablecoin.'"

Min Byung-deok, a member of the Democratic Party of Korea, said the issuer of won stablecoins (Wonsco) should not be limited to banks and emphasized the need for participation from innovative companies. On the 8th, at the forum "Won Stablecoin, Opening the Future of Financial Innovation" held at the Korea Financial Investment Association in Yeouido, Rep. Min said, "While making Wonsco stable centered on banks, we must also allow participation by innovative companies," adding, "If only banks are made issuers, it will ultimately be a feast of vested interests without innovation. Only if innovative companies participate together can it become a payment means actually used." In fact, it is reported that the State Affairs Planning Committee is considering promoting a consortium method in which banks and non-banks jointly participate as issuers of Wonsco. On the other hand, the Bank of Korea maintains the position that issuance should be allowed only to banks and large corporations above a certain scale to avoid market shocks. Rep. Min also emphasized that introducing Wonsco is directly linked to protecting monetary sovereignty. He said, "Dollar stablecoins already account for most of the global market share," and added, "If we give up issuing Wonsco, the won itself will find it difficult to maintain its status. We must leap to a digital G2 through rapid legislation and issuance." He also noted Wonsco's potential spread effects. Rep. Min said, "Korean culture already has global influence," adding, "As people in Southeast Asia, the Middle East, and Africa enjoy Korean culture, if Wonsco is integrated, it could have a great ripple effect in the global market."

Ahn Do-geol, a lawmaker of the Democratic Party of Korea, identified the Korean won stablecoin (Wonsco) as a core driver of Korea's financial innovation and emphasized the need to accelerate discussions on institutionalization. Ahn said at the 'Korean won stablecoin, Opening the Future of Financial Innovation' forum held on the 8th at the Korea Financial Investment Association in Yeouido, "A digital economic transformation is taking place, and stablecoins are the key engine driving it. Ultimately, they will inevitably spread based on overwhelming payment and remittance efficiency," he said. He said, "In some countries where the national currency is unstable, stablecoins are effectively serving as the national currency," and added, "Stablecoins are creating a reserve-currency presence. We too cannot avoid this trend." He continued, "Competitors such as Japan, the European Union (EU), Taiwan, and Thailand have already completed legislation, and Japan has begun issuing yen-based stablecoins," adding, "We also need a swift response." Ahn also mentioned the tangible effects stablecoins could bring to Korean finance. He said, "Korea's annual remittance market reaches 1400 trillion won," and "if Samsung Electronics, Hyundai Motor, and others use Wonsco for payments within global supply chains, they could save trillions of won just in exchange fees." However, he also noted risk concerns. He pointed out, "Concerns are being raised such as difficulties in monetary control, illegal fund transactions, and 'coin run' incidents," but diagnosed that "if operations are based on smart contracts and reasonable rules and regulations and an international cooperation system are in place, these are sufficiently manageable issues." Finally, Ahn said, "I am confident in the potential of the Korean won stablecoin," and emphasized, "I have already proposed four bills related to digital assets, and the party has launched a Digital Asset Committee. Through this discussion, the broad framework for institutional design will be established, and the institutionalization of stablecoins will begin in earnest."

Global e-commerce company Coupang may support stablecoin payments. This possibility arose as its name appeared on the list of initial partners for 'Tempo', a blockchain-based payment layer launched jointly by payment platform Stripe and blockchain investment firm Paradigm. Tempo is a Layer 1 blockchain specialized in stablecoin payments, boasting a fast speed capable of processing 100,000 transactions per second (TPS). Its goal is to solve the slow speeds and high fee issues of existing blockchain payments and to implement blockchain payments that are as fast and inexpensive as credit cards. Not only Coupang, but major global big tech and e-commerce players also participated in this project. OpenAI, Anthropic, and Shopify are named as partners. In particular, Coupang's joining as an initial partner of the blockchain highlights the potential for it to actually support stablecoin payments in the future. Matt Huang, founder of Paradigm, said on his X, "An optimized infrastructure is needed in the process of stablecoin adoption," and added, "Tempo is designed for stablecoins and physical payments based on Stripe's global payments experience and Paradigm's crypto expertise." He went on to add, "It is being developed on the principles of decentralization and neutrality, allowing anyone to issue and use it without favoring a specific stablecoin," and "the set of validators will also secure diversity and independence so that it can evolve into a permissionless model in the long term."

The Democratic Party of Korea is set to soon launch a task force (TF) that will cover virtual assets (cryptocurrency) policy overall. Stablecoin policy and the enactment of legislation on the virtual asset industry are expected to be major agenda items. At a press briefing held on the 5th at the National Assembly in Yeouido, Seoul, Han Jeong-ae, Policy Committee Chair of the Democratic Party of Korea, said, "We are forming an in-parliament TF related to virtual assets. There are many interested lawmakers," and added, "Once TF formation is finalized, we will announce the key agenda and appointments." Han said, "It is not appropriate for the Policy Committee to present direction first while TF discussions have not yet been formalized," emphasizing, "Even limited to stablecoins, lawmakers' opinions differ somewhat regarding the issuers. There is a need to put all of these on the table and discuss them."

The U.S. Securities and Exchange Commission (SEC) has formalized a policy of easing regulations on virtual assets (cryptocurrencies). Unlike the past, when conservative regulation drew heavy criticism, the new agenda largely includes safe-harbor provisions (clauses in laws or regulations that state certain conduct is not considered a violation of a particular rule) and a comprehensive overhaul of the regulatory framework to support projects. On the 4th (local time), Cointelegraph reported that the SEC released draft proposals for about 20 rulemakings in its "Spring 2025 regulatory agenda." The SEC's agenda aims to clarify the regulatory framework for the issuance and sale of virtual assets to provide greater certainty to the market. The agenda included specific exemptive rules for the issuance and sale of virtual assets, the introduction of safe-harbor rules, and amendments to the Securities Exchange Act reflecting virtual-asset trading on alternative trading systems (ATS) and national securities exchanges. This is expected to reduce regulatory burdens for virtual-asset firms and mitigate legal risks. It also proposed revising broker-dealer financial responsibility rules to relax reporting obligations for virtual-asset firms. The industry has argued that those rules effectively imposed customer identification (KYC) and anti-money laundering (AML) requirements on virtual-asset networks, creating an excessive burden. A proposal to amend the Investment Advisers Act of 1940 also drew attention. As recently as eight months ago, the SEC sought to apply stricter custody rules to digital assets, but this time it has revised them to accommodate virtual assets. However, the proposal is still at the agenda stage; public hearings, comment collection, and review procedures remain before any actual implementation. Nonetheless, it is clear that the SEC has shifted to a virtual-asset-friendly stance since former Chair Gary Gensler's resignation in January. Chair Paul Atkins may exercise some authority to shape the interpretation and enforcement of virtual-asset-related rules, making future changes noteworthy.

The UK Treasury has unveiled a draft revision of anti-money laundering (AML) regulations to further tighten supervision of virtual asset (cryptocurrency) operators. The move is intended to plug institutional gaps and respond to evolving risks as financial crime risks grow. According to The Block on the 4th (local time), the Treasury said the aim of the revision is "to robustly tackle financial crime while building a proportionate, risk-based regime the industry can accept." The draft includes measures such as using digital identity verification and improving sector-specific AML and counter-terrorist financing (CTF) guidance. This announcement was prepared based on a public consultation conducted last year. According to the "Money laundering and terrorist financing risk assessment report" published by the UK government in July, the UK remains highly exposed to risk due to its open and large-scale economy. Financial crime risk in the UK is evident in statistics. According to the Home Office's "2024 Economic Crime Survey", about 2% (33,500) of UK businesses experienced money laundering incidents or suspicions last year. Also, more than 43% of fraud was cyber-based and linked to overseas organizations. Virtual assets are cited as a particularly worrying area. The Financial Conduct Authority's (FCA) 2024 survey found that 12% of UK adults hold virtual assets, and law enforcement vigilance is increasing given a rise in laundering cases via overseas service providers. The draft centers on strengthening supervision of virtual asset firms. The FCA has introduced a "fit and proper" assessment instead of the existing "beneficial owner" screening, expanding oversight to cover complex governance structures. It also lowered the reporting threshold for share acquisitions from 25% to 10%, requiring mandatory reporting to the FCA when a stake of 10% or more is acquired or when significant influence over management is exercised. Other proposed amendments include customer due diligence, trust registration, regulation of interbank transactions, and changing the currency unit for money laundering risk thresholds from euros to pound sterling. The Treasury will collect feedback on this draft until September 30 and plans to finalize the proposal and present it to Parliament in early 2026.

The Financial Services Commission has issued guidelines on lending services for virtual asset (cryptocurrency) operators. This was to put in place institutional safeguards as concerns grew over investor harm from overheated competition. On the 5th, the FSC said, "We will implement guidelines that clarify the scope of virtual asset lending services and include user protection measures and market stabilization rules." This measure is a follow-up after requesting exchanges last month, via administrative guidance, to temporarily suspend lending services and after on-site inspections by the Financial Supervisory Service. According to the guidelines, leverage services that lend virtual assets beyond the value of collateral and won-converted monetary lending that could violate the Money Lending Business Act are not permitted. Also, only direct lending using an exchange's proprietary assets is recognized, while indirect lending through third-party cooperation or outsourcing is restricted. Operators must verify whether new users have completed the online education and eligibility test organized by the Digital Asset Exchange Joint Council (DAXA). They are required to set individual lending limits (KRW 30 million–70 million) based on users' trading history and experience. If there is a possibility of forced liquidation during the lending period, prior notice must be given, and additional collateral provision is allowed within the limit. Fees cannot exceed the annual maximum interest rate of 20% set in credit-provision-related regulations, and exchanges must disclose the lending fee structure, lending status by asset (real-time), forced liquidation status (monthly), etc. Lendable assets are limited to virtual assets ranked within the top 20 by market capitalization or assets listed on three or more KRW markets. Assets subject to trading advisories or abnormal trading are prohibited from being lent or used as collateral. In addition, internal control mechanisms must be established to prevent excessive price fluctuations caused by concentrated lending demand for specific assets. The guidelines will be initially implemented as DAXA's self-regulation starting September 5. Financial authorities plan to observe the operation and then legislate the related content to establish a regulatory framework.

Bithumb announced on the 5th that it will hold the '9th Bithumb Trading King' event. The event's target assets are 25 virtual assets (cryptocurrencies) including Volta (A), Algorand (ALGO), and Kaito (KAITO). The starting prize per asset is 3,000,000 won, and the total starting prize is 75,000,000 won. The top 50 people by cumulative trading amount per asset will be selected as winners, and prizes will be distributed on a graduated scale to a total of 1250 people. The total prize pool is structured to be accumulated according to trading volume per asset, so the more active the trading, the larger the prize pool becomes. The competition runs based on trading records from the 2nd through the 15th until 11:59 PM. Participants must trade at least 100,000 won of the relevant asset to be eligible for ranking. Rankings are determined by cumulative trading volume per asset. A 'Trading King Maker Reward Payout' event will also be held. All users who participate in trading via maker orders (limit orders) will receive points equivalent to 0.05% of the executed amount. Users can receive up to 3,000,000 points per asset. Participation can be registered on Bithumb's official website on the 'Ranking' page. Winners will be announced on September 23, and prizes are scheduled to be paid from September 24 to October 10. A Bithumb official said, "Now in its ninth edition, the Trading King event injects vitality into virtual asset trading and helps enrich customers' trading experience," adding, "We will continue to expand customer-participation events to strengthen communication with customers and create a user-centered trading environment."

Lee Eok-yeon, the nominee for Financial Services Commission chair, said that in addition to institutionalizing won-denominated stablecoins, a regulatory framework for dollar-based stablecoins such as USDT and USDC should also be established. At a National Assembly confirmation hearing on the 2nd, the nominee responded to Democratic Party of Korea lawmaker Kang Jun-hyun's remark that dollar stablecoins could threaten South Korea's monetary sovereignty by saying, "I think that along with institutionalizing won-denominated stablecoins, a regulatory framework for dollar stablecoins should also be established." Regarding the 'bank-centered issuance of won stablecoins' approach advocated by the Bank of Korea, he replied, "I will look into that matter further and inform you." Democratic Party of Korea lawmaker Kang Jun-hyun pointed out, "If issuance is allowed to entities other than banks, limits on total issuance, capital requirements, monitoring safety measures, etc., must be put in place." In response, the nominee said, "I am considering it and I am familiar with the related matters."