Banking Sector to Request Permission for Entry into Virtual Asset Business from New Administration

The domestic banking sector is expected to request regulatory improvements related to the virtual asset (cryptocurrency) business from the new administration, which will be inaugurated after the presidential election on the 3rd.

According to the industry on the 3rd, the Korea Federation of Banks gathered opinions at a luncheon meeting held at the end of last month and prepared a draft of 'major recommendations from the banking sector.'

In the draft, banks pointed out that while they are contributing to the creation of a sound virtual asset market, such as by issuing real-name verified deposit and withdrawal accounts, the virtual asset business is not included in the scope of banking business under the current banking laws. The banking sector argued, "Banks, with their credibility, accessibility, and high levels of consumer protection, should be able to enter businesses related to virtual assets, and the system should be improved accordingly."

Some interpret this as a request to allow the issuance of KRW stablecoins (virtual assets linked in value to legal tender) and to promote related businesses.

In addition, the draft is reported to include recommendations such as allowing non-financial businesses entirely and complaints about the regulatory methods of financial authorities.

Once the president-elect is confirmed and the new administration is launched, the banking sector plans to gather additional opinions before delivering the final set of recommendations.