South Korean banks seek regulatory approval for crypto


According to a leaked draught report, the Korea Federation of Banks (KFB) may seek approval from South Korea’s future presidential administration to allow local banks to service cryptocurrency.

According to KFB, the main organisation representing domestic lenders, banks should be able to explore virtual asset companies, such as crypto trading platforms, e-wallets, and custody services.

The proposal said that the introduction of trustworthy institutions can compensate for the absence of adequate investor protection measures, with current crypto rules focusing on anti-money laundering.

The report’s initial draught, intended to convey critical banking industry viewpoints to the Presidential Transition Committee, was given to local banks for assessment.

According to a KFB official, the substance of the leaked report is not final, and banks may choose not to comply with the request.

South Korean legislation prohibits domestic banks from engaging in cryptocurrency-related activities. South Korean banks are now involved in the domestic crypto industry by partnering with cryptocurrency exchanges to provide financial services or by investing in custody services.

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