South Korea Banks Accelerate Euro Stablecoin Talks Amid Regulatory Delays

South Korean banks are accelerating talks on a stablecoin remittance project with European banking sector consortium Keyvallise, ahead of its planned euro-based stablecoin launch within the year. The Pangea Project, a proof-of-concept (PoC) business between Unica, a South Korean bank consortium, and Keyvallise, aims to establish a stablecoin remittance model, reducing cross-border transaction complexities.

Ten domestic banks, including KB Kookmin Bank, Shinhan Bank, and Woori Bank, are participating in the project. The working-level meeting was attended by Keyvallise executives, who also visited South Korea for the Korea Blockchain Week event. Keyvallise plans to launch a euro-based stablecoin within the year, expanding discussions with domestic banks.

However, the issuance of stablecoins is being delayed in South Korea due to the stalled enactment of the Framework Act on Digital Assets. The act oversees virtual asset regulations, including stablecoin issuance requirements and governance structures. Financial authorities have expressed concerns that delaying the law could lead to an 'unfortunate event' where other countries establish stablecoin systems without South Korean participation.