Crypto-Enabled Kiosks for Tourists in South Korea

Foreign visitors to South Korea can now use select crypto-enabled kiosks to convert stablecoins into cash at major tourist destinations. This experiment offers a glimpse into the country’s increasing acceptance of digital asset payments.

These machines, built and operated by South Korean blockchain firm DaWinKS in partnership with the Kaia DLT Foundation, support Kaia-issued USDT—a version of Tether’s stablecoin formed from the merger of Klaytn and Finschia, projects backed by Kakao and Japan’s LINE app.

The companies state that the machines are visible, easy to use, and integrate with existing infrastructures such as convenience stores and transit hubs. Verified users can withdraw fiat in 85 currencies or load funds onto a local transit card.

However, locals are barred from transacting, highlighting a significant exclusion for residents familiar with cryptocurrency. Despite this, there is a real desire to develop the stablecoin industry, even through pilot rollouts, as noted by Dr. Sangmin Seo, chairman of the Kaia DLT Foundation.

Though intended for tourists, the rollout has attracted locals, raising concerns about enforcement and demand for stablecoin cash-out services beyond the target user base. One challenge acknowledged by Seo is KYC (know-your-customer) regulations, which are seen as a bottleneck for offline Web3 interactions.

South Korea’s approach to stablecoins is fragmented, lacking a unified regulatory framework. Competing bills from ruling and opposition lawmakers differ on key aspects like reserves and issuer licensing.

This legislative landscape follows President Lee Jae-myung’s push for a crypto-friendly agenda that includes the proposed Digital Asset Basic Act, allowing companies with sufficient equity to issue stablecoins.

The placement of stablecoin ATMs in commercial areas reflects Korean firms testing real-world crypto infrastructure within legal limits. By operating under a sandbox model, these companies can gather insights on usage patterns and operational risks.

DaWinKS, working under government-sanctioned sandbox licenses, aims to demonstrate that financial technologies can resolve issues without hindering consumer convenience. Seo noted that many business segments are interested in incorporating fintech features with digital teller machines, indicating a broad scope for future use cases.

However, the future of stablecoin oversight will depend on how lawmakers address unresolved questions, such as token issuance, reserve structures, and the role of private firms in the payment system.