South Korean cryptocurrency exchange Upbit has announced that it will not participate in the issuance of Open USD after its operating company Dunam was named among over 140 companies involved in a new stablecoin initiative.
“Upbit has simply demonstrated a potential willingness to consider participating in the future expansion of the open standards ecosystem,” an Upbit spokesperson told Cointelegraph.
The clarification follows similar backlash from Samsung Electronics and other South Korean companies listed on Open Standard.
ChosunBiz reported Friday that Samsung has not had any formal discussions with the project and does not know what role it is expected to play in the project. Meanwhile, Shinhan Financial Group and KBank reportedly only indicated their intention to consider the idea.
Cointelegraph reached out to Open Standard for comment but did not receive a response prior to publication.
Excerpt from the list of companies featured on Open Standard. Source: Open Standards
Open Standard announced its dollar-backed stablecoin on Tuesday, saying more than 140 companies have “signed up to use it” including Visa, Mastercard, BlackRock, Google, Samsung Electronics and Dunum.
Open Standard previously stated that businesses can mint and redeem OUSD without fees or quantity limits. The project also plans to distribute profits from the reserves to participating companies.
But some industry insiders, including Circle CEO Jeremy Allaire, question the sustainability of offering unlimited minting and redemptions for free. Meanwhile, ARK Invest research director Lorenzo Valente also previously described the announcement as a “huge” letter of intent.
South Korea’s stablecoin regulations remain incomplete
South Korea has yet to pass a digital asset basic law, and questions remain about who can issue stablecoins and what role companies can play.
As Cointelegraph previously reported, lawmakers are debating whether issuance should be limited to banks or open to eligible non-bank issuers, but the broader regulatory framework remains under discussion.
Uncertainty has also made it difficult for Korean companies to engage in stablecoin initiatives, as the rules governing stablecoin issuance, reserve management, and participation in the stablecoin ecosystem have not yet been finalized.
