Circle says South Korea can gain an edge from delayed crypto rules

Circle Chief Strategy Officer Dante Disparte urged South Korea to turn its delayed crypto legislation into an advantage by learning from rules already written elsewhere. Speaking at Josun Palace in Seoul on July 23, Disparte told reporters the country can study systems adopted by the US, UK, and Europe and craft better policies. "South Korea can gain a major advantage in regulation and policy as a second mover," he said.

The remarks came as Circle signed memorandums of understanding on stablecoin technology cooperation with Kakao Group – including Kakao, Kakao Pay, and KakaoBank – as well as Toss and Toss Bank. Circle, issuer of USDC, the world's second-largest dollar-backed stablecoin, sees fintech platforms and stablecoins as mutually reinforcing. Disparte described the network effects that arise when the two interact: "You can't put a new train on old tracks." He added that innovation in crypto comes from its interaction with the infrastructure that moves money.

Disparte cited the UK's crypto regulatory framework established this year, the US GENIUS Act passed last year, and Europe's MiCA framework from 2023. South Korea's Digital Asset Act remains stalled, but Disparte argued the country can blend the strengths of US and European approaches. "Europe's MiCA was designed relatively defensively to limit the entry of big tech, but it has recently become much more market-friendly," he said. He urged South Korea to write rules that tap the technological capabilities of domestic firms like Toss and Kakao, and suggested a partnership between South Korea and the US on crypto payments is possible.

But Disparte warned that technology infrastructure cannot afford to fall behind. "Passage of regulatory bills may be delayed, but the technology itself must not lag," he said. He pointed to the approaching "agentic economy" – agentic artificial intelligence that pays directly with stablecoins. Circle plans to actively test what services can be built on that frontier.

Disparte also noted that crypto regulation could become a chance to develop the financial industry, with traditional finance also benefiting. He said past fears that stablecoin adoption would drain bank deposits have not materialized. If South Korea aligns its rules with international standards such as the GENIUS Act, it could become a model case, he added.

The MOUs with Kakao and Toss deepen Circle's footprint in South Korea's fintech scene. Disparte's message is clear: Seoul can write smarter rules by moving second. The next catalyst to watch is progress on the Digital Asset Act in the National Assembly and whether lawmakers take his advice.