Blockchain payment system and stablecoin issuer Terra has added South Korean music streaming platform Bugs to its e-commerce alliance.
As CoinDesk reported Aug. 14, there are now 25 partners in the Singapore-based company’s South Korea-focused payment ecosystem.
The Terra Alliance uses payment solutions provider CHAI as its front-end. CHAI incorporates a mobile payments app which connects to 15 major local banks. Terra’s blockchain-based platform then sits in the background, linking payments to e-commerce sites.
Terra co-founder Daniel Shin said that the platform is smoother than the legacy payment systems in South Korea, “The value chain for payments is convoluted. There are six or seven players, and everyone takes a cut. We streamline the process.”
Earlier this month, Terra announced a partnership with fashion platform Sinsang Market
South Korean regulatory uncertainty is a hindrance
Shin notes that regulatory clarity would be helpful for the cryptocurrency sector, explaining the difference between South Korea and the United States. In the U.S., if something is not illegal then it can be done. However, in South Korea, entrepreneurs should not attempt something unless it is specifically codified, according to Shin.
“Before, it was crypto ‘no’, blockchain ‘yes’,” he said. “Now it is more like blockchain ‘yes’, private crypto ‘yes’, public and listed crypto ‘no’.”
While regulators in the country may still view crypto assets with some skepticism, blockchain technology is enjoying adoption across various sectors with South Korea’s oldest bank recently announcing that it is building a blockchain-based security system.