South Korean banks are actively developing strategies for cryptocurrency in light of the upcoming enforcement of the Virtual Asset User Protection Act in July 2024.
Key Changes in the Banking Sector
Major banks such as KB Kookmin Bank, Shinhan Bank, and Hana Bank are reviewing partnerships with both domestic and global crypto exchanges. They aim to expand their roles beyond fiat deposit accounts to include digital asset custody, trading platforms, and blockchain research.
Regulatory Approach and Compliance
Bank executives state that the new law's clear rules reduce uncertainty, making it easier to allocate resources and develop secure crypto offerings. However, they will face rigorous standards on anti-money laundering, customer protection, and transaction transparency.
Future of Cryptocurrency Services in South Korea
It is expected that local banks will launch new crypto products and platforms following further guidance from the Financial Services Commission. Successful integration of crypto services could unlock new revenue streams and enhance customer offerings.
The adaptation of banking models in light of legislative changes could lead to a more mature and secure digital asset ecosystem in South Korea.
