The Korea Federation of Banks (KFB) might request South Korea’s incoming Presidential administration to support local banks servicing cryptocurrencies, highlights a leaked draft report.
The content in the leaked report is not finalised, signified a representative from the KFB who told a new website.
The laws of South Korea do not allow the local banks to operate businesses related to cryptocurrencies as of now.
According to a leaked draft report, the Korea Federation of Banks (KFB) might request South Korea’s incoming Presidential administration to support local banks servicing cryptocurrencies.
Korea Federation of Banks is the largest entity representing domestic lenders; it highlighted in the report that banks should be allowed to pursue digital assets businesses, which include e-wallets, crypto trading platforms, and custody services.
The draft further signified that the entry of credible banks might counter the lack of proper investor protection measures. Along with current crypto regulations being focused on anti-money laundering.
The first draft of the report focused on delivering vital opinions regarding the banking sector to the Presidential Transition Committee; it was distributed to local banks for review.
According to a representative of the KFB who talked to a news website, the content in the leaked report is not finalised. Further stating that the banks may not push through with the request.
This comes as the laws of South Korea do not allow the local banks to operate businesses related to cryptocurrencies. As of now, the South Korean local banks are taking part in the country’s crypto economy by financial services partners to cryptocurrency exchanges or by investing in custody services.
Recently, as per the travel rule implemented by South Korea, Compliance rules act as green lights for South Korea for regulation of virtual assets but might be threatening the domestic industry with overbearing transfer limitations among exchanges.
The crypto industry is witnessing a lot of thoughts and discussions by authorities globally. And it seems like South Korea is one such country that is still sceptical about the asset class. It is to look forward to how the crypto industry will emerge in the country.
Steve Anderrson(2022.04.01) South Korean Banks Looking For Affirmation On Cryptocurrencies
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