South Korea Reviews Crypto-Finance Separation Principle

The Financial Services Commission (FSC) of South Korea is reassessing the crypto-finance separation principle, a rule that has limited financial companies' participation in the virtual-asset market. Chairman Kim Byoung-hwan hinted at a possible relaxation of market-entry restrictions during a press briefing on May 21.

The review is taking place alongside discussions on stablecoin adoption, an overhaul of the regulatory framework for crypto exchanges, and second-phase legislation. If regulatory easing leads to actual institutional reforms, it may pave the way for financial firms to expand their presence in the virtual-asset market.