Lee Yu-jin, CEO of ZEKTO▶ She is
A digital asset infrastructure expert who has designed payment and platform structures in the South Korea-Vietnam cross-border business sector after entering Sookmyung Women's University with a degree in Political Science and International Relations. She has spearheaded the establishment of on-chain reconciliation systems connecting wallets, payments, and settlements while leading the Korea-Vietnam marketing firm WKBK and the payment-centric blockchain infrastructure company ZEKTO. Under her leadership, ZEKTO focuses on expanding sustainable payment infrastructure, backed by achievements such as certification as a "Blockchain Innovative Growth Venture."
The institutional battle surrounding KRW-based stablecoins will be decided by "trust," not "speed." The Basic Act on Digital Assets, discussed as part of South Korea's second-phase legislation, is a blueprint for enforcing that trust within the market. Lee Yu-jin, CEO of ZEKTO, defined the current white paper (discussions on the Basic Act) as "preemptive discipline to elevate a speculative market into institutional digital finance." The core issues are "disclosure" and "electronic system incidents." As the dual system of licensing for exchanges/custodians and registration for ancillary businesses becomes a reality, the market is highly likely to be restructured at the intersection of technology and regulation, covering even the blind spots at industry boundaries.
The Core: "White Paper Disclosure" and "Strict Liability for System Failures"
CEO Lee described the Phase 1 Virtual Asset User Protection Act, which took effect in July 2024, as a "minimal shield." She explained that it was a form of "post-treatment," focusing on measures like the separate storage of customer deposits in banks and the punishment of market manipulation. In contrast, she views the Phase 2 Digital Asset Basic Act, currently under discussion, as "focused on preemptive prevention to fundamentally filter out risk factors before problems arise."
She identified two "critical milestones" in this legislative shift. First is the mandatory disclosure of white papers by issuers; second is the strict liability (no-fault liability) of service providers for electronic system incidents. "It is true that, until now, coin white papers were often treated like marketing brochures filled with rosy blueprints," she noted. "Through this legislation, their status will be elevated to the level of a Securities Registration Statement in the capital market." She emphasized that if the circulating supply plans or technical promises outlined in a white paper deviate from on-chain data, it could lead to "heavy regulation where not only the issuer but also the exchanges that failed to verify them will be held jointly liable."
Regarding recent large-scale mispayment incidents in the industry, she drew a firm line, stating they were "disasters caused by the collapse of internal controls and double-check systems, not just simple system limitations." Her argument is that "the era where customers must prove their own damages after an incident occurs must end." Her statement—"Only companies that accurately implement white paper promises into code and prove technical integrity to prevent system errors from the outset will survive"—implies that legislation will ultimately redefine the "baseline for technological competition."
Dual System of Licensing and Registration: The Risk Lies in "Asset Movement Across Boundaries"
Where will the greatest confusion arise if the Digital Asset Basic Act bifurcates into a licensing system for exchanges and custody, and a registration system for ancillary businesses? CEO Lee pointed without hesitation to "asset movement at the boundaries of industry sectors." While large-scale licensed exchanges or custodians will be subject to "bank-level management" regarding capital, security, and internal controls, wallet services or DeFi platforms operating under a registration system may face different regulatory hurdles. The issue lies in the fact that user assets "move daily between strictly controlled institutional infrastructure and external platforms with relatively flexible regulations." She noted, "If money laundering issues surface or an electronic system incident occurs during this movement, it becomes ambiguous who should be held accountable and to what extent." The moment regulatory arbitrage is created, these blind spots naturally become "conduits of risk."
As a solution, Lee mentioned "a method of clarifying accountability based on on-chain data." Her logic is that by strengthening requirements for Proof of Reserve or traceable data during large-scale withdrawal segments, the chain of responsibility must remain unbroken when accidents or illicit fund issues arise. Ultimately, she warns that unless the boundaries are properly designed, this dual system could become a "mechanism that fuels disputes" rather than one that "reduces regulation."
Strengthening Internal Controls: Toward "Standardization" Rather Than "Exit"
How will the market change as screenings for internal controls, system stability, and major shareholder eligibility are tightened? While acknowledging the industry's anxiety, CEO Lee did not conclude that this would lead to a "mass exit." She noted, "The physical IT control networks required to handle 100% strict liability entail enormous fixed costs," adding, "It is understandable that there are concerns about the market becoming an uneven playing field."
However, she views the future structural shift as a "process of specialized labor and infrastructure standardization." Just as major financial institutions established standards by collaborating with specialized IT firms rather than developing all security and core systems in-house during the introduction of internet banking, she predicts a growing trend in the virtual asset market to seek "modularized infrastructure providers that meet regulatory standards." She explained, "Large platforms or traditional financial institutions find it difficult to spend massive opportunity costs on building their own systems to cross-check on-chain and off-chain data in real-time."
Regarding the question of how specific the "standard for disclosure" should be when mandatory white paper disclosure is introduced, her answer remained consistent: "Vague plans must be quantified into specific data and code." Phrases like "pushing for a partnership" remain a way to evade responsibility. To fundamentally prevent disputes, she asserted that "actual blockchain operational code must be 100% consistent with the details recorded in the white paper," rather than just a declaration of circulating supply plans. Emphasizing the strengthening of punishments for unfair trade practices, she stressed that "the market will not change unless there is a system capable of catching them," and that data and automation infrastructure to monitor high-frequency, 24-hour, fragmented liquidity are essential.
The "Standard" ZEKTO Aims For and Its 12-Month KPI
In the latter half of the interview, CEO Lee explained ZEKTO's strategy through the "paradox of tightening regulations." Her argument is that as regulations become more detailed, legacy payment platforms will focus on B2C competition, while the demand for outsourcing complex back-end tasks—such as on-chain reconciliation and tax/settlement compliance—will grow.
"We have already completed the development of a system designed to meet institutional tax and accounting standards, and have finished on-site verification through Proof of Concept (PoC)," she said. "Now is the optimal time for our long-standing efforts to gain momentum."
The "UX (User Experience) that needs to be proven," according to her, is not about the payment button itself. "Front-end technology is no longer a novelty," she noted. "The core is whether the back-end—refunds, exchange rate settlements, and merchant tax/accounting processing—operates as seamlessly as a traditional credit card network." Citing a pilot project in Vietnam, she claimed to have solved challenges such as "partial cancellations of multi-assets" and "instant refunds." Regarding investor protection, she emphasized that if a licensing system for stablecoins and a 100% reserve asset requirement are introduced, "securing absolute safety will lead to convenience in daily payments."
Regarding the debate over the issuers of KRW-based stablecoins, she expressed respect for the Bank of Korea's "51% Bank Consortium" concept in terms of its responsibility to prevent another Terra-Luna incident. However, she drew a firm line, stating that the flaw lay in the "algorithmic structure without physical asset collateral" rather than the nature of the issuer. "Global standards keep the door of innovation open for non-financial FinTech firms, provided they strictly adhere to 100% safe asset trusts and external audits," she said, proposing an open collaboration model for South Korea where banks support the credibility of reserves while Web3 companies lead innovation in distribution and UI/UX.
In the 12-month roadmap, she promised three measurable KPIs. First, to "continuously and transparently report" figures that minimize accounting discrepancies even in commercial environments. Second, to "prove operation within daily payment networks" by completing infrastructure integration with domestic PGs and VANs within 12 months. Third, to "preemptively introduce external accounting audits and disclosure systems" without waiting for the full implementation of the law. CEO Lee emphasized, "Accumulating data and disclosing it transparently is the most powerful protection that allows users and merchants to trust the infrastructure and entrust their assets."
[박지훈 기자 · 사진 류준희 기자]
A digital asset infrastructure expert who has designed payment and platform structures in the South Korea-Vietnam cross-border business sector after entering Sookmyung Women's University with a degree in Political Science and International Relations. She has spearheaded the establishment of on-chain reconciliation systems connecting wallets, payments, and settlements while leading the Korea-Vietnam marketing firm WKBK and the payment-centric blockchain infrastructure company ZEKTO. Under her leadership, ZEKTO focuses on expanding sustainable payment infrastructure, backed by achievements such as certification as a "Blockchain Innovative Growth Venture."
CEO Lee described the Phase 1 Virtual Asset User Protection Act, which took effect in July 2024, as a "minimal shield." She explained that it was a form of "post-treatment," focusing on measures like the separate storage of customer deposits in banks and the punishment of market manipulation. In contrast, she views the Phase 2 Digital Asset Basic Act, currently under discussion, as "focused on preemptive prevention to fundamentally filter out risk factors before problems arise."
She identified two "critical milestones" in this legislative shift. First is the mandatory disclosure of white papers by issuers; second is the strict liability (no-fault liability) of service providers for electronic system incidents. "It is true that, until now, coin white papers were often treated like marketing brochures filled with rosy blueprints," she noted. "Through this legislation, their status will be elevated to the level of a Securities Registration Statement in the capital market." She emphasized that if the circulating supply plans or technical promises outlined in a white paper deviate from on-chain data, it could lead to "heavy regulation where not only the issuer but also the exchanges that failed to verify them will be held jointly liable."
Regarding recent large-scale mispayment incidents in the industry, she drew a firm line, stating they were "disasters caused by the collapse of internal controls and double-check systems, not just simple system limitations." Her argument is that "the era where customers must prove their own damages after an incident occurs must end." Her statement—"Only companies that accurately implement white paper promises into code and prove technical integrity to prevent system errors from the outset will survive"—implies that legislation will ultimately redefine the "baseline for technological competition."
Where will the greatest confusion arise if the Digital Asset Basic Act bifurcates into a licensing system for exchanges and custody, and a registration system for ancillary businesses? CEO Lee pointed without hesitation to "asset movement at the boundaries of industry sectors." While large-scale licensed exchanges or custodians will be subject to "bank-level management" regarding capital, security, and internal controls, wallet services or DeFi platforms operating under a registration system may face different regulatory hurdles. The issue lies in the fact that user assets "move daily between strictly controlled institutional infrastructure and external platforms with relatively flexible regulations." She noted, "If money laundering issues surface or an electronic system incident occurs during this movement, it becomes ambiguous who should be held accountable and to what extent." The moment regulatory arbitrage is created, these blind spots naturally become "conduits of risk."
As a solution, Lee mentioned "a method of clarifying accountability based on on-chain data." Her logic is that by strengthening requirements for Proof of Reserve or traceable data during large-scale withdrawal segments, the chain of responsibility must remain unbroken when accidents or illicit fund issues arise. Ultimately, she warns that unless the boundaries are properly designed, this dual system could become a "mechanism that fuels disputes" rather than one that "reduces regulation."
How will the market change as screenings for internal controls, system stability, and major shareholder eligibility are tightened? While acknowledging the industry's anxiety, CEO Lee did not conclude that this would lead to a "mass exit." She noted, "The physical IT control networks required to handle 100% strict liability entail enormous fixed costs," adding, "It is understandable that there are concerns about the market becoming an uneven playing field."
However, she views the future structural shift as a "process of specialized labor and infrastructure standardization." Just as major financial institutions established standards by collaborating with specialized IT firms rather than developing all security and core systems in-house during the introduction of internet banking, she predicts a growing trend in the virtual asset market to seek "modularized infrastructure providers that meet regulatory standards." She explained, "Large platforms or traditional financial institutions find it difficult to spend massive opportunity costs on building their own systems to cross-check on-chain and off-chain data in real-time."
Regarding the question of how specific the "standard for disclosure" should be when mandatory white paper disclosure is introduced, her answer remained consistent: "Vague plans must be quantified into specific data and code." Phrases like "pushing for a partnership" remain a way to evade responsibility. To fundamentally prevent disputes, she asserted that "actual blockchain operational code must be 100% consistent with the details recorded in the white paper," rather than just a declaration of circulating supply plans. Emphasizing the strengthening of punishments for unfair trade practices, she stressed that "the market will not change unless there is a system capable of catching them," and that data and automation infrastructure to monitor high-frequency, 24-hour, fragmented liquidity are essential.
In the latter half of the interview, CEO Lee explained ZEKTO's strategy through the "paradox of tightening regulations." Her argument is that as regulations become more detailed, legacy payment platforms will focus on B2C competition, while the demand for outsourcing complex back-end tasks—such as on-chain reconciliation and tax/settlement compliance—will grow.
"We have already completed the development of a system designed to meet institutional tax and accounting standards, and have finished on-site verification through Proof of Concept (PoC)," she said. "Now is the optimal time for our long-standing efforts to gain momentum."
The "UX (User Experience) that needs to be proven," according to her, is not about the payment button itself. "Front-end technology is no longer a novelty," she noted. "The core is whether the back-end—refunds, exchange rate settlements, and merchant tax/accounting processing—operates as seamlessly as a traditional credit card network." Citing a pilot project in Vietnam, she claimed to have solved challenges such as "partial cancellations of multi-assets" and "instant refunds." Regarding investor protection, she emphasized that if a licensing system for stablecoins and a 100% reserve asset requirement are introduced, "securing absolute safety will lead to convenience in daily payments."
Regarding the debate over the issuers of KRW-based stablecoins, she expressed respect for the Bank of Korea's "51% Bank Consortium" concept in terms of its responsibility to prevent another Terra-Luna incident. However, she drew a firm line, stating that the flaw lay in the "algorithmic structure without physical asset collateral" rather than the nature of the issuer. "Global standards keep the door of innovation open for non-financial FinTech firms, provided they strictly adhere to 100% safe asset trusts and external audits," she said, proposing an open collaboration model for South Korea where banks support the credibility of reserves while Web3 companies lead innovation in distribution and UI/UX.
In the 12-month roadmap, she promised three measurable KPIs. First, to "continuously and transparently report" figures that minimize accounting discrepancies even in commercial environments. Second, to "prove operation within daily payment networks" by completing infrastructure integration with domestic PGs and VANs within 12 months. Third, to "preemptively introduce external accounting audits and disclosure systems" without waiting for the full implementation of the law. CEO Lee emphasized, "Accumulating data and disclosing it transparently is the most powerful protection that allows users and merchants to trust the infrastructure and entrust their assets."
[박지훈 기자 · 사진 류준희 기자]
This article is a translated news piece from Korean, generated using AI technology.
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