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South Korean giant Fintech Kakaopay 27. June crashed 17%when trading continued after the Korean Stock Exchange suspended shares for the second time in the week due to growing skepticism about the won Stablecoin.
According to Bloomberg“The exchange has called Kakaopay as an“ investment risk ”as a result of extreme volatility, but the basic cause runs much deeper than a simple market mechanics.
Over the past month, the shares tripled because the markets have been strongly betting on the evolving digital activate regulations in South Korea, which created an occasional window for established payment companies.
The dramatic selection resulted in the growing tension between the market enthusiasm for stablecoin and the growing regulatory concerns about the risks for financial stability.
Korean markets with stablecoin fever
The excitement began at the beginning of this month when Democratic Party of South Korea Proposed legislation that would allow local companies to issue Stablecoins of enforcement.
The Democratic Party of South Korea is launched by the Digital Asset Committee, which aims to reduce the Krypto Regulation.#Southkorea #ordinancehttps://t.co/p8xjdmqfoz
– Cryptonews.com (@cryptonews) 13 May 2025
Kakaopay recently filed 18 trademarks related to digital currency services. The submission has created extensive speculation that the company has built itself to become the main player in the expected Stabnecoin market in South Korea.
The company joins the growing list of Korean financial institutions that compete with the aim of ensuring intellectual ownership related to Stablecoin, including KB KOOKmin Bank, Hana Bank and the Internet, only Kakao Bank.
This wider crypto-connected shares swept through multiple companies, while cocoobank touched three-year maximum than the regulatory warning caused sharp twists.
Even the Nexus developer joined Rush and registered Stabnecoin based on the winning called “KRWX” on Binance Blockchain when administered with the appropriate trademark applications.
Thursday’s sharp correction, however, has stopped this trend and companies now take their steps carefully.
Control of regulatory reality reduces optimism
Korean Governor Lee Chang-Yong muted The investor’s enthusiasm warning about the risks associated with the stable stablecins.
The Korean Bank, the South Korea’s central bank, is still lukewarm in the designs of the start of Stablecoin, despite the recent meeting with the USD (USDC).#Southkorea #Stablecoins #Usdchttps://t.co/qpwbqgvtfg
– Cryptonews.com (@cryptonews) June 19, 2025
Central bank governor warned that domestic stablecoins could paradoxically increase the demand for alternatives of denominated in the dollar and complicate foreign exchange operations.
The Bank for international settlements has questioned whether stablecoins can truly replace traditional money and, despite rapid sector growth, can call their future “unclear” role.
South Korea’s regulators are not isolated from these challenges. It is a global tension that politicians are struggling around the world because they actively explore ways to create a sustainable framework for Stablecoins.
While Hong Kong recently approved comprehensive legislation Stablecoin and the American Senate approved Genius ActImplementation challenges and cross -border coordination remain important obstacles.
However, institutional adoption is still accelerating despite regulatory uncertainty, while Chainlink recently cooperates with MasterCard to bring stable infrastructure Worldwide over 3 billion users worldwide.
@Shopify Will start USDC Stablecoin payments for millions of traders in 34 countries via @COINBASE and @stripIt offers fees for partial penny transactions because the crypto goes to the main current.#Base #Strip #Shopifyhttps://t.co/mwbphsiziz2y
– Cryptonews.com (@cryptonews) June 13, 2025
Shopify has also recently integrated with Coinbase payment payments, allows millions of traders to directly receive stablecoins. Meanwhile, technology giants as a meta also reportedly investigate the integration of stablecoins on their platforms.
Contribution Cocoopay shares rushes by 17%because Korean exchange suspends trading with Stablecoin exposure He appeared for the first time Cryptonews.
