"Made in Korea, Yet Korea Is Left Out?"... What's Going On With Galaxy's New Feature? [Crypto Radar]

Samsung Wallet to Launch USDC Transfers in the U.S. Later This Month
Available on 82 Million Galaxy Devices in the U.S.
Eliminates the Need to Install a Separate Wallet or Manage Private Keys
Send Money to Banks in 60 Countries in Seconds

The era of directly sending and receiving dollar-backed stablecoins on smartphones has begun. Samsung Electronics is taking mobile finance powered by digital assets to the next level by adding a feature to send stablecoins (USDC) through Samsung Wallet in the U.S. market. Yet South Korea, the “home turf of Galaxy,” is being left out of this innovation because of foreign exchange regulations and institutional gaps, critics say.

A flag flies at Samsung’s Seocho office in Seoul on the 6th, the day after Samsung Electronics Vice Chairman Lee Jae-yong was released on a suspended sentence following his appeal trial. Photo by Kim Hyunmin / kimhyun81@

Samsung Electronics’ U.S. subsidiary recently announced that starting in the final week of October, it will offer a service for sending Circle’s dollar-backed stablecoin, USDC, through Samsung Wallet to Galaxy users in the U.S. who have completed identity verification. The service is aimed at users with approximately 82 million eligible devices.

The service will be available to U.S. residents aged 18 or older who use Samsung Wallet-compatible devices and have completed identity verification (KYC) and biometric authentication, such as facial or fingerprint recognition.

The service’s greatest strength is that it eliminates the “complexity” that has long hindered cryptocurrency transfers. Previously, users had to install a separate wallet app and navigate complicated processes, including entering difficult-to-understand wallet addresses, managing private keys, and calculating fees. By contrast, Samsung Wallet’s integrated service lets users send USDC easily without installing a separate wallet or managing private keys. Recipients can receive funds in compatible digital asset wallets as well as in local bank accounts in more than 60 countries worldwide.

Chae Woncheol, vice president and head of the Digital Wallet Team in Samsung Electronics’ MX Business, said, “International transfers should be as convenient as using a wallet that is already installed on your phone. We have integrated USDC into Samsung Wallet so users can send money instantly without installing a separate app or dealing with the complicated management of private keys.”

Several major global companies specializing in digital assets took part in building the service. Circle’s USDC, issued by Circle, was adopted as the base currency, while Bastion, a U.S.-licensed custody infrastructure provider, is responsible for the payment and fund management framework. Coinbase Prime is participating as a sub-custodian, securely holding USDC in its custody vaults. High-performance blockchain partners, including Solana and Sui, have joined to provide network infrastructure for fast transfers and low fees.

Lee Junho, an analyst at Hana Securities, said, “The key to making the service commercially viable is that users will be able to access stablecoin services through their existing mobile wallets without needing a separate exchange account or having to manage private keys. Adoption of stablecoins by a dominant hardware platform could sharply accelerate their mainstream adoption.”

Related services will launch in the U.S. at the end of October, but it is likely to be a considerable time before Galaxy users in South Korea can use the feature. South Korea’s current Foreign Exchange Transactions Act and regulatory framework for virtual assets do not formally permit cross-border fund transfers using stablecoins.

The Bank of Korea and financial authorities are wary that the unchecked circulation of won- and dollar-denominated stablecoins could affect liquidity in the foreign exchange market and create a risk of circumventing foreign exchange regulations. With delays in legislation for the Digital Asset Basic Act (Phase 2) and tax-related disputes adding to the challenges, it is difficult even to begin discussing the introduction of such services in South Korea.

A digital asset industry official said, “Major economies such as the U.S. and Europe are moving quickly to legislate and establish regulatory frameworks for stablecoins, while South Korea is being left out of innovative services because of regulatory gaps. Guidelines need to be established promptly to ensure that domestic companies remain globally competitive.”

This content was produced with the assistance of AI translation services.