Voices emerged saying governments worldwide must secure financial transparency—through blocking illicit funds and verifying identities—for the smooth adoption of stablecoins. There were also calls to design regulations at a level that does not hinder innovation such as cross-border payments or asset tokenization.
At the Future Tech Forum: Digital asset held in Gyeongju on the 30th, Michael Casey, senior advisor at the Digital Currency Initiative at the Massachusetts Institute of Technology (MIT) Media Lab, Paul Blustein, researcher at the Center for Strategic and International Studies (CSIS), and Lu In, head of business development for Asia at the Solana Foundation, joined as panelists. They discussed the theme "Stablecoins and cross-border innovation — bridging global finance and regulation."
Advisor Casey said, "While I acknowledge the need to block the circulation of illicit funds, excessive regulation can undermine financial inclusion and market access," adding, "We need a light authentication framework that leverages the openness and transparency of the Blockchain to combine know-your-customer (KYC) checks with transaction tracing." He added, "If we apply the regulatory approach of the existing financial system as is, the efficiency and scalability of the Blockchain could be damaged."
Researcher Blustein said, "The possibility that stablecoins will be used for sanction evasion or money laundering is a realistic risk," and noted, "To maintain market trust, each country must manage them with clear supervisory authority and legal accountability." He added, "Innovation without regulation may produce short-term results, but it can ultimately harm financial stability."
Head Lu In proposed a technical alternative. He said, "The Solana network embeds whitelist/blacklist functions and a know-your-transaction (KYT) module for each transaction to meet the requirements of regulators," adding, "Regulation-friendly design and technological innovation can coexist." He added, "In a market with a mature payments infrastructure like Korea, a won-based stablecoin can improve the efficiency of cross-border payments and become a new growth engine for the regional economy."
They said that as stablecoins expand into real markets for payments, remittances, and tokenization, it is important for governments and private corporations to strike a "balance between transparency and innovation." Advisor Casey said, "If regulators do not recognize the structure of open Blockchain networks, a new financial ecosystem will not grow."
Researcher Blustein said, "Stablecoins based on legal trust are the next stage of the global payments system." Head Lu In said, "The technology is already ready. The government should provide clear guidelines, and corporations should increase real-world use cases based on them."