South Korea delays decryption review of the banking sector amid policy concerns

South Korea’s Presidential Transition Commission confirmed that it has not conducted a detailed review of the banking sector’s proposals to facilitate digital asset regulation and expand non-banking business opportunities. Commission spokesman Cho Seung-Rae explained that the panel continues to sort different proposals and aligns with existing policy frameworks and campaign pledges. He also added that at this organizational stage, Stablecoin measures will not receive any special considerations.

The Bank of Korea Federation has been actively lobbying the new administration for regulatory overhauls that will allow greater bank participation in the digital assets sector. Their compiled proposal highlights the existence of virtual assets outside traditional bank surveillance, despite financial institutions being involved in cryptocurrency services.

The banking industry is advocating for updating its regulatory framework

The banking sector argues that revisions to regulations allow institutions to leverage established reliability and consumer protection standards for virtual asset businesses. Banks argue that current regulations cannot address the reality of increasing engagement in cryptocurrency markets through a variety of services that fill traditional financial and digital assets. This lobbying occurs as South Korea continues to develop a comprehensive framework for one of the world’s largest cryptocurrency markets.

South Korea’s Presidential Commission is facing pressure

The Presidential Transition Committee, which operates as the National Planning Commission under President Lee Jae Myung, faces pressure to balance industry expansion demand with regulatory prudence. The committee’s systematic approach suggests that it is intentionally considering potential implications rather than rapid policy implementation.

Concerns from the Bank of Korea add complexity to the regulatory debate, particularly regarding winner-made stubcoins that could affect the effectiveness of monetary policy. Central banks have warned that private, ridiculous, ridiculous people using domestic currencies could complicate foreign exchange controls and undermine central banks’ monetary policy controls.

These concerns are consistent with international central banks’ attention on private digital currencies that can compete or complicate traditional monetary policy tools. The Bank of Korea’s stance highlights broader debates on stable banking regulations within the global financial system and central banks’ digital currency development.

The committee’s careful review process suggests that regulatory changes are likely to emerge through intentional policy development rather than rapid industry accommodation. This approach could provide a more comprehensive framework, but could slow the banking sector’s expansion into digital asset services.

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