South Korea’s banking sector is pushing aggressively for greater authority in the digital asset space, but the new government is signaling a slowdown. The Presidential Transition Committee has confirmed it is not conducting detailed reviews of proposals to ease crypto regulations or expand the banking business into nontraditional sectors.
Committee spokesperson Cho Seung-rae stated that all submitted proposals are being reviewed broadly to ensure they align with existing policy directions and campaign promises.
He reported that special prescription measures are not being given particular attention at this stage of government planning for stablecoin.
In this, the Korea Federation of Banks is piling pressure on the administration, demanding quick corrections in the regulations. According to the group, 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 by offering services and other partnership deals.
Banking officials say that their arrival in the digital asset market may strengthen trust and consumer protection. Their compliance history regarding regulation makes them feel better placed to facilitate financial services related to crypto responsibly.
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Central Bank Raises Alarm Over Stablecoin Risks
While banks lobby for access, the Bank of Korea has voiced concerns over the impact of won-based stablecoins on the country’s monetary policy. The central bank cautions that such private digital currencies could complicate foreign exchange oversight and weaken its policy tools.
These warnings reflect broader caution in global financial circles, where regulators are increasingly wary of the growing influence of privately issued digital currencies. As of today, the committee is taking the side of caution and not blistering novelty.
In South Korea, the digital asset market is one of the biggest in the world, but instead of approving specific crypto assets, regulators focus on regulatory stability. The cautious steps written in the committee’s steps forward imply that the crypto green light may not be implemented in the banks as soon as expected.
Despite strong lobbying from banks, South Korea’s new administration is taking a reserved stance on digital asset reforms. For now, the push for crypto power will have to wait as the government sticks to careful planning over fast policy shifts.
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