South Korea Accelerates Stablecoin Regulation, Considers Lifting Bank Crypto Investment Ban
South Korea's Financial Services Commission (FSC) plans to complete digital asset legislation by year-end, including stablecoin regulation, and is considering lifting a nine-year ban on financial institutions holding stakes in crypto companies.
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South Korea's Financial Services Commission (FSC) is accelerating efforts to legislate stablecoin regulation as part of the second phase of the Digital Asset Basic Act.
Kim Sung-jin, head of the FSC's virtual asset division, announced at a parliamentary session that the government aims to complete digital asset legislation by the end of the year.
The FSC is also considering lifting a nine-year ban on financial institutions holding stakes in cryptocurrency companies, potentially allowing banks and brokerage firms to invest in virtual assets.
Additionally, the FSC is exploring the introduction of institutional brokerage and over-the-counter intermediary mechanisms for the virtual asset market, drawing on EU practices to ease entry requirements for financial institutions.
Context
What happened before
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Ban on financial institutions holding stakes in crypto companies introduced
Digital Asset Basic Act (first phase) adopted
FSC accelerates development of second phase, including stablecoin regulation
Digital asset legislation expected to be completed
FSC considers lifting nine-year ban and introducing new market mechanisms