With the Digital Asset Basic Act (Virtual Asset Basic Act) on the horizon, the domestic gaming industry is moving beyond the era of 'P2E (Play-to-Earn)' to explore the use of stablecoins as infrastructure for payments and settlements. The goal is not to create speculative models based on selling game coins, but to leverage digital assets pegged to fiat currency to reduce transaction fees and streamline global trade.

On the 22nd, YOON & YANG LLC hosted a seminar titled 'Stablecoin Strategies for Game Companies and Government Relations for the Upcoming Digital Asset Basic Act.' Moderated by Game Center Head Kim Jong-il, the event featured presentations by Senior Advisor Kim Jung-hoon (former Head of the Blockchain & Virtual Asset Team at the Financial Supervisory Service) and Attorney Lee Bo-hyun (Head of the Digital Finance Team at YOON & YANG), with Senior Advisor Kim Yong-tae (former Director of the Electronic Finance Supervision Department at the Financial Supervisory Service) chairing the discussion and Q&A session.

The most significant use case discussed was 'nano (micro) payments.' Senior Advisor Kim Yong-tae noted, "Credit card payments rely on a centralized structure involving VANs, PG companies, card issuers, banks, the Korea Financial Telecommunications & Clearings Institute, and the Bank of Korea, making the cost of a 100-won transaction as high as 30 to ₩40. Stablecoins use a decentralized payment system, enabling small, high-frequency transactions in the 10-won range."

Interpreting this as an innovation in product design, Center Head Kim Jong-il said, "If a 10k-won shield can be used 1k times, you could structure a product where ₩10 is deducted per use. The very relationship between payments and paid items could be redesigned."

Global settlement was also highlighted as a key application. Center Head Kim Jong-il stated, "In the past, exports to South America and Southeast Asia primarily relied on local currency exchange, but companies engaged in international business are already actively experimenting with USDT and USDC as payment methods."

Senior Advisor Kim Yong-tae added, "Once the bill passes, it will intersect with the Foreign Exchange Transactions Act. For game companies with many overseas users, real-time cross-border transactions and settlements will be a key topic for restructuring contracts." Senior Advisor Kim Jung-hoon explained, "Given the speed, fees, and 24/7 availability of nano payments, they offer a clear advantage in settlement, and item trading can be simplified using smart contracts instead of escrow."

However, the scope of application faces hurdles under the current Game Industry Promotion Act. During the event, a question was raised: "The Game Industry Promotion Act prohibits the provision of prizes; since this clause focuses on the act itself rather than the degree of violation, won't stablecoin conversion be blocked even after new legislation is enacted."

Center Head Kim Jong-il replied, "If stablecoins are viewed as 100% convertible cash-equivalent assets, paying out game results in stablecoins is a 'line that cannot be crossed' under current law. However, unlike rewards based on game outcomes, rewards for simple attendance or activity are not considered prizes, so they could be utilized in that area."

The strategic significance of stablecoins was also discussed. Center Head Kim Jong-il said, "The Korean gaming industry is worth approximately ₩23 trillion, with ₩15 trillion in domestic distribution. If these transactions circulate via won-pegged stablecoins, game companies become vital customers for issuers, which in turn gives game companies greater bargaining power."

An 'Issuer Council' was proposed as a vehicle to realize this. Attorney Lee Bo-hyun pointed out, "Domestic virtual asset regulations are structured around exchanges, leaving DAXA as virtually the only channel for official industry opinions. There is no platform to represent the voices of issuers." He also argued for differential regulation, stating, "Utility tokens limited to in-game use do not need to be regulated on the same level as payment-type tokens that require system stability."

This is set against a backdrop of incomplete regulation. The Virtual Asset User Protection Act, which took effect in July 2024, is a first-stage law focused on user protection; it lacks rules on issuance, listing, disclosure, and stablecoins. The second-stage legislation, the Digital Asset Basic Act, has been pending since its proposal last year due to a lack of consensus on key issues. These include the requirements for won-pegged stablecoin issuers (such as mandatory 50%+1 share ownership by banks), restrictions on major shareholders of exchanges, and the separation of issuance and distribution functions. Globally, the EU has already set its course with MiCA, the world's first comprehensive regulation, and the U.S. with the GENIUS Act, which took effect last July.

Senior Advisor Kim Jung-hoon concluded, "While there will be a preparation period once the law is enacted, preparations must begin much earlier. The game companies that act now will shape the framework of the Basic Act."