ATM exchanging USDT for cash has appeared in South Korea, aimed at tourists.

A number of ATMs converting stablecoin USDT to cash have recently been deployed at tourist and retail locations across South Korea, but currently only serve foreign visitors with passports under the government’s sandbox regulations.

The machine operated by the South Korean blockchain company DaWinKS in collaboration with the Kaia DLT Foundation supports USDT issued by Kaia – a stablecoin version of Tether on a public blockchain integrated from Klaytn (Kakao) and Finschia (LINE). Verified users can withdraw cash in 85 currencies or top up domestic transportation cards.

However, residents of South Korea are still prohibited from using the service, even if they own cryptocurrency. Some individuals have attempted to access the machines secretly, raising questions about the enforcement of laws on the ground.

This trial deployment comes as the South Korean National Assembly debates two opposing stablecoin bills from the Democratic Party and the ruling party, focusing on regulation, licensing, and reserve mechanisms. President Lee Jae-myung is currently promoting a crypto-friendly policy, including a bill that allows for the issuance of stablecoins pegged to the won.

Mr. Seo Sang-min – Chairman of the Kaia Foundation – stated that these ATMs are a pilot step in the “gateway” connecting digital assets with real payments, while also acknowledging that the biggest barrier remains the identity verification process (KYC).