South Korean Banks Gear Up for Crypto Market Amid Regulatory Shifts

South Korean banks are accelerating their preparations for entry into the cryptocurrency and stablecoin market, forming dedicated teams and establishing partnerships ahead of anticipated regulatory reforms. Major lenders such as Shinhan, Kookmin, Woori, K Bank, and Busan Bank are organizing internal task forces and collaborating with blockchain startups to position themselves for a potential legal framework that would allow banks to issue and manage stablecoins [1].

The reforms are being driven by political shifts following the election of President Lee Jae-myung, whose pro-crypto rhetoric has spurred legislative momentum. The National Assembly is currently reviewing a range of proposals aimed at supporting the industry, with banks interpreting these signals as an opportunity to act swiftly. The Maeil Kyungjae newspaper reported that the banking sector is taking proactive steps to ensure they are ready when new laws are enacted [1].

Woori Bank has already established a Digital Asset Team to oversee stablecoin and digital wallet initiatives. Additionally, it has signed a business agreement with a blockchain startup to revive its crypto custody plans and is working on a stablecoin consortium with multiple partners [1]. Similarly, Kookmin Bank (KB) formed a Digital Asset Response Council in June, aiming to create a unified, group-wide strategy that includes its affiliates and external partners such as insurance and asset management firms [1].

KEB Hana Bank has also formed a crypto working group across its affiliates to explore opportunities related to won-pegged stablecoins and global market expansion. Meanwhile, Shinhan Bank has assembled a task force of around 20 employees to manage its digital asset initiatives [1].

The rush to prepare for regulatory changes is also evident in the trademark applications filed by banks. For example, KB has submitted 32 trademarks related to won-pegged stablecoins and 49 related to foreign currency stablecoins [1]. Other banks, such as K Bank, which partners with exchange Upbit, have also created digital asset teams to explore blockchain-based services.

Industry insiders believe that early preparation is key to securing a competitive edge once stablecoins are legalized. An unnamed banking official noted that while the reforms are still in the legislative process, the time needed to implement them means proactive planning is essential [1]. South Korean banks are clearly positioning themselves to be first-movers in what could be a major new financial sector.

Source: [1] South Korean Banks Scramble to Ready Crypto Biz Plans Ahead of Regulatory Reforms (https://cryptonews.com/news/south-korean-banks-scramble-to-ready-crypto-biz-plans-ahead-of-regulatory-reforms/)