TechFlow news, June 3 — According to ChosunBiz, the Korea Federation of Banks plans to propose to the new government the allowance for banks to enter the virtual asset industry. Under the draft proposal, banks hope to offer trust services primarily focused on digital asset management and custody. However, the current Financial Services Act does not include virtual assets within the scope of banking operations, restricting the development of such services.
In addition, banks have proposed being allowed to enter non-financial sectors to respond to competitive pressures from large technology companies that integrate financial and non-financial services, and they are calling for resolution of existing regulatory fairness issues.
Regarding investment management services, banks suggest following the U.S. model by permitting investment trust management and expanding the range of trust assets to meet growing asset management needs driven by population aging. The draft also recommends clearly specifying in the Banking Act the grounds for sanctions against financial institutions and their executives to enhance institutional transparency and predictability.
