Stablecoin ATMs Launch in South Korea Tourist Zones
South Korean tourist and retail locations now feature select automated teller machines (ATMs) allowing users with USDT stablecoins to withdraw cash, according to an ongoing regulatory experiment.
The machines, built by DaWinKS and operated with Kaia DLT Foundation, support the Kaia network’s version of Tether’s USDT stablecoin. They are positioned at convenient locations like convenience stores and transit hubs, with 85 fiat withdrawal options and the ability to load a local transit card.
Access remains restricted to foreign passport holders under the nation’s regulatory sandbox rules, explicitly excluding local residents and unverified users. This launch occurs amidst legislative debates by Korean lawmakers on stablecoin regulations.
Despite official targeting of tourists, reports suggest some locals attempt to access the machines, prompting questions about enforcement and potential service demand among residents. Implementing strict “Know Your Customer” (KYC) verification poses another challenge highlighted by project leaders.
The South Korean approach lacks unified stablecoin legislation, as lawmakers from ruling and opposition parties introduce competing bills regarding reserve requirements, licensing, and enforcement. This legislative uncertainty appears to drive pilot programs like this ATM rollout, enabling companies to test infrastructure under government licenses.
Digital assets are presented as a potential gateway connecting fintech services, potentially including debit card functionalities or medical payments. However, the pace of stablecoin adoption depends heavily on the upcoming national regulatory framework.
