[Exploring the Path of Digital Assets] LEE Yu Jin, CEO of ZEKTO
"We Must Actively Raise Our Voice on the Digital Asset Basic Act"
"The Most Frightening Thing Is the Harm of Vague Shadow Regulations"
"Betting on Solid Services as a Patent-Based Tech Company"
[Edaily Reporter Hoon-gil Choi] "The longer the legislation of the Digital Asset Basic Act related to stablecoins is delayed, the larger the dark side of illegal money laundering will grow. We must bring the shadows into the light to prevent the side effects of decentralization."
LEE Yu Jin, CEO of digital asset payment solutions company ZEKTO (specialist committee member of the Korea Digital Asset Evaluation and Certification), met with Edaily at the company's headquarters office in Guui-dong, Gwangjin-gu, Seoul, saying "Full-scale discussions on the Digital Asset Basic Act are expected to resume after the June local elections," and emphasizing that "the industry must actively raise its voice so that what truly matters can be included in the legislation."
LEE Yu Jin, CEO of digital asset payment solutions company ZEKTO, emphasized the need to actively discuss stablecoin-related Digital Asset Basic Act (Phase 2 legislation) after the June 3 local elections. The name ZEKTO is derived from Zeus, the supreme deity, and Ploutos, the symbol of wealth, simultaneously representing power and prosperity. (Photo=ZEKTO)
Earlier, the government, including the Ministry of Economy and Finance and the Financial Services Commission, reported to President Lee Jae-myung in January that stablecoin-related Digital Asset Basic Act — a key national policy agenda of the Lee Jae-myung administration — would be legislated within the first quarter of this year. However, war broke out between the United States and Iran on February 28, and legislative discussions including party-government consultations have been repeatedly postponed due to the local elections.
Currently pending in the National Assembly are a total of eight stablecoin-related bills, including comprehensive digital asset bills by Democratic Party lawmakers Byeong-deok Min, Gang-il Lee, and Sang-hyeok Park along with People Power Party lawmaker Jae-seop Kim; stablecoin-specific bills by Democratic Party lawmakers Do-geol An and Hyeon-jeong Kim along with PPP lawmaker Eun-hye Kim; and the Virtual Asset Basic Act submitted by PPP lawmaker Seong-won Kim on March 9. A total of 8 stablecoin-related bills are currently pending.
As bill processing has been delayed beyond schedule, the management burden on companies preparing stablecoin businesses continues to grow. ZEKTO has been steadily preparing its business by securing patents including 'blockchain-based collateralized stablecoin operation management technology,' and has also been pursuing digital asset payment services in Vietnam and Poland.
CEO LEE emphasized the need for swift discussion of the Digital Asset Basic Act, stating that "for companies, the most frightening thing is not strict regulation but vague regulation." He noted his disappointment that "issues directly related to actual user protection and operational stability are receiving relatively less attention compared to discussions on issuers such as the 50%+1 share bank consortium," urging that hidden issues be discussed in detail from now on.
CEO LEE particularly urged that legislation of the Digital Asset Basic Act open pathways for solid domestic tech companies. He stressed that "only teams that hold independent technological sovereignty through core patents, possess both real operational proof data and the ability to comply with the regulatory framework, can survive in the rough payment market and become the infrastructure standard," adding that "ZEKTO, which possesses all stablecoin technologies from issuance to payment and settlement, will build solid services."
— What digital asset businesses have you been involved in so far?
△ We conducted digital asset proof-of-concept in Vietnam, focused on stablecoin payments. We are in discussions with various institutions and local governments. Above all, we are putting our efforts into ensuring the reliability of stablecoin payments.
We obtained a patent for the issuance system of blockchain-based collateralized stablecoins in response to market fluctuations. The on-chain patent works in a way that allows consumers to easily recognize transactions via QR codes. We built issuance, payment, and settlement without complex system procedures.
— What is the significance of the stablecoin-related patents?
△ Most people have heard the words stablecoin or blockchain. But when asked "So how is it actually useful in everyday life?", very few can give a clear answer. These two patents are ZEKTO's technological answer to that question. These patents are highly significant in that ZEKTO has simultaneously turned both the safety and practical usability of stablecoins into technological assets.
When the market fully opens, whether or not a company holds technology patents will have a major impact on competitive advantage for market entry. These patents go beyond simply demonstrating technological possession. They are intended to secure the technological foundation for actively participating in the market and collaborating with domestic and international partners. The patents will serve as a solid basis for securing technological credibility in partnership negotiations and regulatory discussions.
ZEKTO announced the completion of its patent for the 'Method of Operating and Managing Blockchain-Based Collateralized Stablecoins and a Stablecoin Service System for the Same.' (Photo=ZEKTO)
— What is the 'Method of Operating and Managing Blockchain-Based Collateralized Stablecoins and a Stablecoin Service System for the Same' patent?
△ This patent is the answer to the question: "How do you prove that a one-dollar coin is truly worth one dollar?" After the Terra-Luna crisis highlighted the risks of algorithm-based stablecoins, backing with real assets became the alternative — the same principle as taking out a bank loan with your home as collateral.
However, the crypto market is highly volatile. For this reason, ZEKTO focused on designing services to operate automatically with minimal human intervention. Excessive reliance on human judgment and intervention can lead to errors and delays. We built an automated structure that operates consistently in response to changes in collateral value by implementing pre-designed rules in code.
We also considered the possibility of integration with established financial institutions from the initial design stage. ZEKTO has been preparing from the start with regulatory compliance including KYC and AML in mind.
— You also filed a patent for 'visual code-based on-chain payment' technology.
△ This is technology that makes it possible to actually use safe coins in everyday life. No matter how superior the technology is, if actual use is inconvenient, it is difficult to spread in the market. The conventional method of copying wallet addresses and checking gas fees has practical limitations for everyday small payment environments.
ZEKTO focuses on managing the entire payment process — from payment request, approval, completion, cancellation, to refund — in a consistent flow on the blockchain, going beyond simple transfer records. It is a 'digital payment proof system' with reduced risk of tampering. This increases verifiability between transaction parties and reduces the possibility of disputes.
— What is ZEKTO's competitiveness and differentiation?
△ ZEKTO encompasses all stablecoin technologies from issuance to payment and settlement. Having our own mainnet means there is no concern about foreign currency outflow from stablecoin circulation. We also possess our own custody system and payment settlement system through in-house technology.
We have extensive experience in issuance, custody, and payment. We have experience obtaining and operating a Virtual Asset Service Provider (VASP) license in Poland. We are also pursuing business expansion in Vietnam, including a project in Da Nang to provide convenient payment services for tourists. Having examined problems from multiple angles throughout issuance, custody, payment, and commercialization, we are a company with powerful proof-of-concept capabilities.
— What domestic and international partnerships are you pursuing?
△ We are currently conducting in-depth discussions on technology integration and proof-of-concept with domestic payment infrastructure companies and overseas financial and commerce-related partners. Specific company names will be disclosed along with visible outcomes based on mutual agreement.
ZEKTO is pursuing a strategy of partnering with infrastructure operators that already have merchant networks. This is because stablecoin payment operators face realistic limitations in directly expanding individual distribution channels from the early stage.
Just as users of KakaoPay don't worry about server connections, ZEKTO's technology also operates stably behind the user experience, pursuing a structure where users can use the service conveniently without feeling any additional complexity.
— Isn't stablecoin effectively prohibited in Korea due to the delay in Digital Asset Basic Act legislation?
△ We intend to apply for a regulatory sandbox. We have assigned a law firm to conduct legal review. Payment settlement will be handled by electronic payment agents (PG companies), crypto-related matters by exchanges, and ZEKTO will play the role of placing services on the blockchain network on a non-custodial basis. We will conduct thorough legal review and then apply for the sandbox.
— Are there any difficulties from 'regulatory gaps,' 'regulatory ambiguity,' or 'shadow regulations'?
△ Regulation itself is absolutely necessary. The problem is that even without clear institutional frameworks, the market sometimes operates as if regulations exist, interpreting things conservatively.
Regulations with clear substance can be contested or improvement can be requested. But under so-called 'shadow regulations,' predictability for companies about what standards to prepare for and how to design their business becomes far too low. For companies, the most frightening thing is not strict regulation but vague regulation.
In fact, the inflow of foreign capital into the domestic digital asset market has significantly contracted compared to before. This is a clear example showing that uncertainty is acting as a high barrier to entry in our market.
LEE Yu Jin, CEO of ZEKTO, emphasized that "ZEKTO, which possesses all stablecoin technologies from issuance to payment and settlement, will build solid services." (Photo=ZEKTO)
— The processing of the stablecoin-related Digital Asset Basic Act (Phase 2 legislation) is being delayed. How does the industry view this?
△ The longer the legislation is delayed, the larger the dark side of illegal money laundering will grow. We must bring the shadows into the light to prevent the side effects of decentralization. Only then can the regulatory framework maintain control.
It is regrettable that issues directly tied to actual user protection and operational stability are receiving relatively less attention compared to discussions on issuers. As full-scale discussions are expected to resume after the June local elections, the industry must actively raise its voice so that what truly matters can be included.
— What are your thoughts on the 50%+1 share bank-centered consortium and equity regulations on digital asset exchanges?
△ I understand the intent of limiting the issuers of Korean won stablecoins to bank-centered consortiums from the perspective of monetary stability. However, there is concern that this could result in a structure where the role and innovative capacity of tech companies may not be sufficiently reflected.
Coordination is needed between the execution speed required for innovative services and the conservative decision-making structure of the regulatory framework. A division of roles where banks handle trust and stability while tech companies handle technology and innovation would be far more efficient. Exchange equity regulations need to be reconsidered.
— As Bank of Korea Governor Shin Hyun-song suggested, can CBDCs and stablecoins coexist?
△ I see CBDCs and stablecoins not as substitutes but as complementary, each handling trust and innovation respectively.
CBDCs are stable digital currency infrastructure designed on the basis of national trust. Stablecoins, on the other hand, have the character of 'Programmable Money' — capable of condition-based design such as restrictions to specific stores or transfers upon meeting certain conditions.
It is difficult to incorporate all such flexibility into the national system. The global regulatory trend is also moving in the direction of bringing private stablecoins within the regulatory framework and managing them as national competitiveness, rather than outright prohibition.
— What specific discussions do you think are needed?
△ Three specific discussions are important. First, technical standards discussions are needed to verify transparency and safety. Second, securing international consistency so that global and Korean legislation can align is crucial. Third, evidence-based legislation that creates laws based on sufficient experimental data must be pursued.
— What are ZEKTO's plans for this year?
△ There are two main plans. The first is 'technology verification.' Patent registration means the technology has been concretized and rights have been secured. The next step is to directly prove that it operates stably in actual field conditions.
We are also pursuing a system where payment data is automatically reported to the National Tax Service the moment a digital asset payment is made. This would allow merchants to automatically receive tax benefits without individually reporting their sales. From the National Tax Service's perspective, there is also the benefit of being able to easily monitor high-risk wallets.
The immediate goal is to demonstrate the payment and settlement automation technology with major domestic banks and global PG companies at actual merchant locations. We must accumulate data showing that the stablecoin payment solution has been actually used and operated without issues before we can prepare for the next stage.
The second is 'institutional contribution.' I am currently active as a specialist committee member of the Korea Digital Asset Evaluation and Certification and continue to give lectures through blockchain broadcasts. Good and effective legislation can only emerge when the voices of those who actually build the technology in the field reach the policy table. Phase 2 legislation will be formally discussed this year. I want to play a role in clearly organizing the industry's position and presenting reasonable alternatives.
— Is there anything you would like to emphasize?
△ Solutions that merely imitate technology will hit the wall of regulations and real-world traffic the moment the market opens. ZEKTO has been preparing for payments over a long period. We have successfully completed proof-of-concept (PoC) for our technology. From the initial design stage, we have implemented KYC, AML, and a Fraud Detection System (FDS) within the system.
Ultimately, only teams that hold independent technological sovereignty through core patents, possess both real operational proof data and the ability to comply with the regulatory framework, can survive in the rough payment market and become the infrastructure standard.
The team that has turned easy-to-use and safe payment infrastructure into reality. This is the reason we work through the night, and the only value ZEKTO will prove in the market.
최훈길 기자 (choigiga@edaily.co.kr)
View Original Article
“스테이블코인법 지연에 불법자금세탁↑…韓 기술기업 살려야”
* This article is a simple AI-assisted translation. The original Korean news article is the authoritative source.
[Exploring the Path of Digital Assets] LEE Yu Jin, CEO of ZEKTO
"We Must Actively Raise Our Voice on the Digital Asset Basic Act"
"The Most Frightening Thing Is the Harm of Vague Shadow Regulations"
"Betting on Solid Services as a Patent-Based Tech Company"
[Edaily Reporter Hoon-gil Choi] "The longer the legislation of the Digital Asset Basic Act related to stablecoins is delayed, the larger the dark side of illegal money laundering will grow. We must bring the shadows into the light to prevent the side effects of decentralization."
LEE Yu Jin, CEO of digital asset payment solutions company ZEKTO (specialist committee member of the Korea Digital Asset Evaluation and Certification), met with Edaily at the company's headquarters office in Guui-dong, Gwangjin-gu, Seoul, saying "Full-scale discussions on the Digital Asset Basic Act are expected to resume after the June local elections," and emphasizing that "the industry must actively raise its voice so that what truly matters can be included in the legislation."
LEE Yu Jin, CEO of digital asset payment solutions company ZEKTO, emphasized the need to actively discuss stablecoin-related Digital Asset Basic Act (Phase 2 legislation) after the June 3 local elections. The name ZEKTO is derived from Zeus, the supreme deity, and Ploutos, the symbol of wealth, simultaneously representing power and prosperity. (Photo=ZEKTO)
Earlier, the government, including the Ministry of Economy and Finance and the Financial Services Commission, reported to President Lee Jae-myung in January that stablecoin-related Digital Asset Basic Act — a key national policy agenda of the Lee Jae-myung administration — would be legislated within the first quarter of this year. However, war broke out between the United States and Iran on February 28, and legislative discussions including party-government consultations have been repeatedly postponed due to the local elections.
Currently pending in the National Assembly are a total of eight stablecoin-related bills, including comprehensive digital asset bills by Democratic Party lawmakers Byeong-deok Min, Gang-il Lee, and Sang-hyeok Park along with People Power Party lawmaker Jae-seop Kim; stablecoin-specific bills by Democratic Party lawmakers Do-geol An and Hyeon-jeong Kim along with PPP lawmaker Eun-hye Kim; and the Virtual Asset Basic Act submitted by PPP lawmaker Seong-won Kim on March 9. A total of 8 stablecoin-related bills are currently pending.
As bill processing has been delayed beyond schedule, the management burden on companies preparing stablecoin businesses continues to grow. ZEKTO has been steadily preparing its business by securing patents including 'blockchain-based collateralized stablecoin operation management technology,' and has also been pursuing digital asset payment services in Vietnam and Poland.
CEO LEE emphasized the need for swift discussion of the Digital Asset Basic Act, stating that "for companies, the most frightening thing is not strict regulation but vague regulation." He noted his disappointment that "issues directly related to actual user protection and operational stability are receiving relatively less attention compared to discussions on issuers such as the 50%+1 share bank consortium," urging that hidden issues be discussed in detail from now on.
CEO LEE particularly urged that legislation of the Digital Asset Basic Act open pathways for solid domestic tech companies. He stressed that "only teams that hold independent technological sovereignty through core patents, possess both real operational proof data and the ability to comply with the regulatory framework, can survive in the rough payment market and become the infrastructure standard," adding that "ZEKTO, which possesses all stablecoin technologies from issuance to payment and settlement, will build solid services."
— What digital asset businesses have you been involved in so far?
△ We conducted digital asset proof-of-concept in Vietnam, focused on stablecoin payments. We are in discussions with various institutions and local governments. Above all, we are putting our efforts into ensuring the reliability of stablecoin payments.
We obtained a patent for the issuance system of blockchain-based collateralized stablecoins in response to market fluctuations. The on-chain patent works in a way that allows consumers to easily recognize transactions via QR codes. We built issuance, payment, and settlement without complex system procedures.
— What is the significance of the stablecoin-related patents?
△ Most people have heard the words stablecoin or blockchain. But when asked "So how is it actually useful in everyday life?", very few can give a clear answer. These two patents are ZEKTO's technological answer to that question. These patents are highly significant in that ZEKTO has simultaneously turned both the safety and practical usability of stablecoins into technological assets.
When the market fully opens, whether or not a company holds technology patents will have a major impact on competitive advantage for market entry. These patents go beyond simply demonstrating technological possession. They are intended to secure the technological foundation for actively participating in the market and collaborating with domestic and international partners. The patents will serve as a solid basis for securing technological credibility in partnership negotiations and regulatory discussions.
ZEKTO announced the completion of its patent for the 'Method of Operating and Managing Blockchain-Based Collateralized Stablecoins and a Stablecoin Service System for the Same.' (Photo=ZEKTO)
— What is the 'Method of Operating and Managing Blockchain-Based Collateralized Stablecoins and a Stablecoin Service System for the Same' patent?
△ This patent is the answer to the question: "How do you prove that a one-dollar coin is truly worth one dollar?" After the Terra-Luna crisis highlighted the risks of algorithm-based stablecoins, backing with real assets became the alternative — the same principle as taking out a bank loan with your home as collateral.
However, the crypto market is highly volatile. For this reason, ZEKTO focused on designing services to operate automatically with minimal human intervention. Excessive reliance on human judgment and intervention can lead to errors and delays. We built an automated structure that operates consistently in response to changes in collateral value by implementing pre-designed rules in code.
We also considered the possibility of integration with established financial institutions from the initial design stage. ZEKTO has been preparing from the start with regulatory compliance including KYC and AML in mind.
— You also filed a patent for 'visual code-based on-chain payment' technology.
△ This is technology that makes it possible to actually use safe coins in everyday life. No matter how superior the technology is, if actual use is inconvenient, it is difficult to spread in the market. The conventional method of copying wallet addresses and checking gas fees has practical limitations for everyday small payment environments.
ZEKTO focuses on managing the entire payment process — from payment request, approval, completion, cancellation, to refund — in a consistent flow on the blockchain, going beyond simple transfer records. It is a 'digital payment proof system' with reduced risk of tampering. This increases verifiability between transaction parties and reduces the possibility of disputes.
— What is ZEKTO's competitiveness and differentiation?
△ ZEKTO encompasses all stablecoin technologies from issuance to payment and settlement. Having our own mainnet means there is no concern about foreign currency outflow from stablecoin circulation. We also possess our own custody system and payment settlement system through in-house technology.
We have extensive experience in issuance, custody, and payment. We have experience obtaining and operating a Virtual Asset Service Provider (VASP) license in Poland. We are also pursuing business expansion in Vietnam, including a project in Da Nang to provide convenient payment services for tourists. Having examined problems from multiple angles throughout issuance, custody, payment, and commercialization, we are a company with powerful proof-of-concept capabilities.
— What domestic and international partnerships are you pursuing?
△ We are currently conducting in-depth discussions on technology integration and proof-of-concept with domestic payment infrastructure companies and overseas financial and commerce-related partners. Specific company names will be disclosed along with visible outcomes based on mutual agreement.
ZEKTO is pursuing a strategy of partnering with infrastructure operators that already have merchant networks. This is because stablecoin payment operators face realistic limitations in directly expanding individual distribution channels from the early stage.
Just as users of KakaoPay don't worry about server connections, ZEKTO's technology also operates stably behind the user experience, pursuing a structure where users can use the service conveniently without feeling any additional complexity.
— Isn't stablecoin effectively prohibited in Korea due to the delay in Digital Asset Basic Act legislation?
△ We intend to apply for a regulatory sandbox. We have assigned a law firm to conduct legal review. Payment settlement will be handled by electronic payment agents (PG companies), crypto-related matters by exchanges, and ZEKTO will play the role of placing services on the blockchain network on a non-custodial basis. We will conduct thorough legal review and then apply for the sandbox.
— Are there any difficulties from 'regulatory gaps,' 'regulatory ambiguity,' or 'shadow regulations'?
△ Regulation itself is absolutely necessary. The problem is that even without clear institutional frameworks, the market sometimes operates as if regulations exist, interpreting things conservatively.
Regulations with clear substance can be contested or improvement can be requested. But under so-called 'shadow regulations,' predictability for companies about what standards to prepare for and how to design their business becomes far too low. For companies, the most frightening thing is not strict regulation but vague regulation.
In fact, the inflow of foreign capital into the domestic digital asset market has significantly contracted compared to before. This is a clear example showing that uncertainty is acting as a high barrier to entry in our market.
LEE Yu Jin, CEO of ZEKTO, emphasized that "ZEKTO, which possesses all stablecoin technologies from issuance to payment and settlement, will build solid services." (Photo=ZEKTO)
— The processing of the stablecoin-related Digital Asset Basic Act (Phase 2 legislation) is being delayed. How does the industry view this?
△ The longer the legislation is delayed, the larger the dark side of illegal money laundering will grow. We must bring the shadows into the light to prevent the side effects of decentralization. Only then can the regulatory framework maintain control.
It is regrettable that issues directly tied to actual user protection and operational stability are receiving relatively less attention compared to discussions on issuers. As full-scale discussions are expected to resume after the June local elections, the industry must actively raise its voice so that what truly matters can be included.
— What are your thoughts on the 50%+1 share bank-centered consortium and equity regulations on digital asset exchanges?
△ I understand the intent of limiting the issuers of Korean won stablecoins to bank-centered consortiums from the perspective of monetary stability. However, there is concern that this could result in a structure where the role and innovative capacity of tech companies may not be sufficiently reflected.
Coordination is needed between the execution speed required for innovative services and the conservative decision-making structure of the regulatory framework. A division of roles where banks handle trust and stability while tech companies handle technology and innovation would be far more efficient. Exchange equity regulations need to be reconsidered.
— As Bank of Korea Governor Shin Hyun-song suggested, can CBDCs and stablecoins coexist?
△ I see CBDCs and stablecoins not as substitutes but as complementary, each handling trust and innovation respectively.
CBDCs are stable digital currency infrastructure designed on the basis of national trust. Stablecoins, on the other hand, have the character of 'Programmable Money' — capable of condition-based design such as restrictions to specific stores or transfers upon meeting certain conditions.
It is difficult to incorporate all such flexibility into the national system. The global regulatory trend is also moving in the direction of bringing private stablecoins within the regulatory framework and managing them as national competitiveness, rather than outright prohibition.
— What specific discussions do you think are needed?
△ Three specific discussions are important. First, technical standards discussions are needed to verify transparency and safety. Second, securing international consistency so that global and Korean legislation can align is crucial. Third, evidence-based legislation that creates laws based on sufficient experimental data must be pursued.
— What are ZEKTO's plans for this year?
△ There are two main plans. The first is 'technology verification.' Patent registration means the technology has been concretized and rights have been secured. The next step is to directly prove that it operates stably in actual field conditions.
We are also pursuing a system where payment data is automatically reported to the National Tax Service the moment a digital asset payment is made. This would allow merchants to automatically receive tax benefits without individually reporting their sales. From the National Tax Service's perspective, there is also the benefit of being able to easily monitor high-risk wallets.
The immediate goal is to demonstrate the payment and settlement automation technology with major domestic banks and global PG companies at actual merchant locations. We must accumulate data showing that the stablecoin payment solution has been actually used and operated without issues before we can prepare for the next stage.
The second is 'institutional contribution.' I am currently active as a specialist committee member of the Korea Digital Asset Evaluation and Certification and continue to give lectures through blockchain broadcasts. Good and effective legislation can only emerge when the voices of those who actually build the technology in the field reach the policy table. Phase 2 legislation will be formally discussed this year. I want to play a role in clearly organizing the industry's position and presenting reasonable alternatives.
— Is there anything you would like to emphasize?
△ Solutions that merely imitate technology will hit the wall of regulations and real-world traffic the moment the market opens. ZEKTO has been preparing for payments over a long period. We have successfully completed proof-of-concept (PoC) for our technology. From the initial design stage, we have implemented KYC, AML, and a Fraud Detection System (FDS) within the system.
Ultimately, only teams that hold independent technological sovereignty through core patents, possess both real operational proof data and the ability to comply with the regulatory framework, can survive in the rough payment market and become the infrastructure standard.
The team that has turned easy-to-use and safe payment infrastructure into reality. This is the reason we work through the night, and the only value ZEKTO will prove in the market.
최훈길 기자 (choigiga@edaily.co.kr)
View Original Article
“스테이블코인법 지연에 불법자금세탁↑…韓 기술기업 살려야”
* This article is a simple AI-assisted translation. The original Korean news article is the authoritative source.