South Korea is taking significant steps toward embracing digital asset payments by introducing crypto-to-fiat conversion services specifically designed for foreign visitors. The country has launched a network of specialized ATMs that allow tourists to convert stablecoins into cash at popular destinations throughout the nation.
The innovative crypto-enabled kiosks represent a collaboration between DaWinKS and the Kaia DLT Foundation. These machines specifically support Kaia-issued USDT, which emerged from the merger of Klaytn and Finschia networks, offering tourists a streamlined way to access local currency.
Restrictions for Local Citizens
While tourists can freely access these services, South Korean authorities have implemented strict restrictions preventing local citizens from using the crypto ATMs, regardless of whether they own digital assets. The machines are strategically positioned across the country’s infrastructure, including convenience stores and transit hubs, making them easily accessible to international visitors.
Foreign tourists can withdraw cash in 85 different currencies or load funds directly onto local transit cards through these user-friendly kiosks. Dr. Sangmin Seo, chairman of the Kaia DLT Foundation, explained that this represents South Korea’s genuine interest in developing the stablecoin sector through experimental programs.
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Despite the tourist-only restrictions, reports indicate that some locals have attempted to use the machines discretely. This situation has sparked discussions about enforcement mechanisms and whether demand for stablecoin conversion extends beyond the intended user base.
The ATM operations face several operational challenges, particularly regarding know-your-customer requirements for background verification and identity confirmation. Seo noted that these KYC procedures often create significant delays for offline Web3 applications.
DaWinKS has equipped their ATMs with sophisticated authentication systems featuring passport and facial recognition technology similar to airport immigration procedures used in Korea. The company plans to deploy machines at seven key locations, including NSeoul Tower, Homeplus locations in Hapjeong and CentumCity, LIFEWORK Mega Store Myeongdong, Lotte Mart Gwangbok, NamDaeMun Exchange Cafe, and Myeongdong Money Club.
CEO Jong-myeong Lee emphasized the company’s commitment to building worldwide infrastructure for stablecoin accessibility. Under government sandbox licensing, DaWinKS aims to connect financial technologies while resolving consumer inconveniences reliably.
Local businesses have expressed strong interest in integrating fintech capabilities with these digital teller machines. Companies want to incorporate features such as debit card services, vouchers, foreign-visitor-only casino and resort payments, plus medical payment options. The ATM system’s compatibility with various fintech solutions creates bridges between digital assets and real-world cash transactions.
Legislative Developments
South Korea currently lacks a comprehensive regulatory framework for stablecoins, creating compliance challenges for residents according to Seo. This week, both ruling and opposition parties introduced competing stablecoin legislation aimed at establishing crypto regulations.
Democratic Party representative Ahn Do-geol proposed legislation for won-pegged stablecoins that would prohibit interest payments. Meanwhile, the ruling People Power Party’s Kim Eun-hye submitted an alternative bill that opposes interest payment restrictions.
Richard O’Carroll, APAC regional manager at hardware wallet manufacturer OneKey, argued that effective Korean stablecoin regulation should balance government oversight with private sector innovation. He warned that while government control remains essential for monetary sovereignty, consumer protection, and systemic risk management, overly restrictive policies could damage Korea’s position in the global digital asset market.
Ahn’s proposed legislation would require stablecoin issuers to secure Financial Services Commission approval and maintain minimum capital reserves of $3.6 million. Kim’s competing bill focuses on promoting innovation within crypto payment systems.
President Lee Jae-myung advanced his cryptocurrency-friendly policy agenda in June by introducing new stablecoin legislation for businesses. The Digital Asset Basic Act would restrict stablecoin issuance to companies holding at least 500 million won ($366,749) in capital. The president argued that South Korea must establish a won-pegged stablecoin to prevent domestic wealth from flowing to overseas markets.
Market Implications
This development signals gradual institutional acceptance of cryptocurrency infrastructure in major Asian markets, though the tourist-only restrictions limit immediate adoption impact. The regulatory framework discussions suggest potential for broader stablecoin integration pending legislative clarity.
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