South Korean banks are looking for permission to use cryptocurrency

According to a leaked draught report, the Korea Federation of Banks (KFB) may ask South Korea’s future presidential government to license local banks that service cryptocurrencies.

Quick facts

Banks should be allowed to explore virtual asset companies, such as crypto trading platforms, e-wallets, and custody services, according to KFB, the major organization representing domestic lenders.

With present crypto legislation focusing on anti-money laundering, the introduction of credible institutions can counteract the lack of effective investor protection safeguards, according to the draught.

The initial draught of the report was circulated to local banks for evaluation in order to provide crucial comments on the banking industry to the Presidential Transition Committee.

The content of the leaked report is not finished, according to a KFB spokesman, who also stated that banks may refuse to comply with the request.

Local banks are prohibited from establishing cryptocurrency-related enterprises under South Korean law.

South Korean banks are currently involved in the local crypto industry by partnering with bitcoin exchanges to provide financial services or investing in custody services.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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