In South Korea, the banking sector is actively pushing for greater authority in the digital asset space, yet the new government signals a slowdown in the process.
Banks' Call for Change
The Korea Federation of Banks is pressuring the administration to hasten the correction of existing regulations, which they believe are outdated. The banks argue that current rules hinder them from venturing into the digital asset industry, despite having established a presence through various partnerships.
"The existing regulations are old, and they do not allow banks to venture into an industry in which they have already established a presence indirectly," stated a spokesperson for the federation.
Central Bank Raises Concerns
Meanwhile, the Bank of Korea has expressed worries about the impact of won-based stablecoins on the country's monetary policy. The central bank warns that such private digital currencies could complicate foreign exchange oversight and weaken policy tools.
Government's Reserved Approach
South Korea's new administration is taking a cautious stance on digital asset reforms. The government's plan involves thoroughly reviewing proposals to ensure they align with existing policy directions and campaign promises. They are committed to a careful and deliberate approach and are not in a hurry to adopt new measures.
As a result, despite strong lobbying from banks, South Korea maintains a cautious approach to digital asset reforms. The future of changes remains uncertain.
