Financial Services Commission "Easing the separation between finance and virtual assets to be comprehensively reviewed for global cases and impacts on soundness"

The Financial Services Commission said it will comprehensively review overseas cases and the impact on the soundness of financial companies regarding the easing of the separation between finance and virtual assets.

According to industry sources on the 11th, Kim Seong-jin, head of the Virtual Assets Division at the Financial Services Commission, said at the "2026 Economic and Financial Outlook Seminar" held at the Banks Association Hall in Jung-gu, Seoul, "The easing of the separation between finance and virtual assets will be examined taking into account global cases and the impact on the soundness of financial companies."

The separation between finance and virtual assets refers to measures that prohibit financial companies from holding virtual assets or participating in related businesses. It has been in effect since 2017. As discussions on easing the separation between finance and industrial capital continue, the need for financial institutions to participate in the virtual asset market has been raised.

Kim said, "Some administrative guidance was gradually relaxed earlier this year through a corporate roadmap for participation in the virtual asset market," and added, "Since custody entry by financial firms is active in major countries such as the United States, we will consider institutional improvements by referring to those cases." Regarding the direction for institutionalizing digital assets, he said, "We are pursuing legislation that encompasses businesses and market infrastructure, moving away from user-protection-centered regulation," and said, "Policy focus is on nurturing the blockchain industry and establishing a smooth token economy."

The Financial Services Commission is currently preparing the second-stage legislation for the Basic Digital Asset Act. Kim emphasized, "We are reviewing ways to foster custody (custodial) infrastructure and integrate it with existing financial business models, and establishing a legal basis for issuing won-based stablecoins (virtual assets whose value is linked to fiat currency) and creating a regulatory system for the circulation of dollar stablecoins are also key tasks."