South Korea Launches Stablecoin ATMs for Foreign Tourists via Kaia USDT

Foreign visitors to South Korea can now withdraw cash using Kaia-issued U.S. Dollar Tether (USDT) at select digital ATMs (DTMs) located in major tourist and commercial areas. The service, launched by South Korean blockchain firm DaWinKS in collaboration with the Kaia DLT Foundation, allows users to convert stablecoins into 85 different fiat currencies or load funds onto a local transit card. The initiative is part of a broader experiment under a regulatory sandbox framework, which limits access to foreign passport holders and excludes domestic users, even those familiar with cryptocurrency [1].

The DTMs are currently installed in seven key locations, including NSeoul Tower, Myeongdong Money Club, and Lotte Mart branches. The machines integrate biometric and passport-based KYC verification to ensure regulatory compliance. After authentication, users can withdraw cash or obtain a prepaid transit card for local use. Any remaining funds can also be converted to USD before departure, subject to prevailing exchange rates [2].

Dr. Sangmin Seo, Chairman of the Kaia DLT Foundation, emphasized the project's potential as a gateway for real-world crypto-to-cash transactions. He noted the service could eventually expand to include debit cards, vouchers, and even medical payments, provided regulatory conditions evolve [2]. The initiative also aligns with South Korea's ongoing legislative debates over stablecoin regulation, with lawmakers from different parties proposing competing frameworks that vary in terms of reserve requirements, licensing, and enforcement [1].

The service is part of a larger push to integrate stablecoins into everyday financial activities. DaWinKS, which already supports major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), is exploring the inclusion of KAIA, the native token of the Kaia blockchain, into the DTM system. The company's CEO, Jong-myeong Lee, highlighted the strategic value of the partnership, noting it supports broader fintech expansion and reinforces the role of stablecoins in cross-border commerce [2].

Despite the current restrictions, the rollout has drawn attention from local users, with some reportedly attempting to access the machines discreetly. This highlights the existing demand for stablecoin-based services beyond the target demographic, suggesting potential for future expansion if regulatory constraints are adjusted.

As part of the sandbox model, the project allows companies to test real-world crypto infrastructure within legal boundaries, gathering insights on usage and operational risks before potential policy changes. However, Seo acknowledged that KYC compliance remains a significant challenge for offline Web3 adoption, and resolving these issues without hindering user convenience is a key priority.

The integration of Kaia USDT into the DTM network marks a step forward in South Korea’s efforts to position itself as a leader in digital asset innovation. The country’s regulatory environment remains fragmented, but the pilot rollout reflects a growing willingness to explore practical applications for stablecoins in everyday commerce [1][2].

Source:

[1] Mitrade - [https://www.mitrade.com/insights/news/live-news/article-3-997325-20250730](https://www.mitrade.com/insights/news/live-news/article-3-997325-20250730)

[2] U.Today - [https://u.today/kaias-native-usdt-now-supported-in-dawinkss-digital-atms](https://u.today/kaias-native-usdt-now-supported-in-dawinkss-digital-atms)