Korea Federation of Banks seeks to allow banks to provide crypto services: Report

The Korea Federation of Banks (KFB) wants to bring legal approval for the local South Korean banks to provide crypto services for citizens.

South Korea is a crypto & blockchain-friendly country in the world, which is known for its strict rules and regulations for the Crypto companies to ensure safety for the citizens’ investment and also to prohibit any kind of illegal funding or illegal use of Cryptocurrencies. In the present time, even crypto ICOs projects are also not allowed, so we can understand the level of safety for the users and efforts by the government agencies, which are continuously working to prohibit unfair activities. 

Few news reports claimed that they got some information from a leaked draft, which is still in the private domain. The proposal drafted by the Korea Federation of Banks (KFB), one of the biggest lender agency in South Korea, proposed to bring legislation for the local banks to allow the crypto services like virtual asset businesses, including crypto trading platforms, e-wallets, and custody services.  

Reportedly, KFB proposed drafted bill will be presented to the presidential administration of South Korea to bring this rule under the law to give freedom to the banks to step with crypto & blockchain services. 

Reports noted that the proposed draft also pointed out many factors, which are showing better support for this proposed legislation. 

If Banks will provide these crypto services then in those situations the Bank will be able to counter and detect illegal use of Cryptocurrencies and also money laundering. 

A spokesperson from KFB shared some details on the leaked details of the draft and confirmed that such details are true but not final. KFB official also claimed that Banks may not get approval for the same. Indirectly KFB official claimed that legislation will fail to get executed in the laws.

At present, local banks of South Korea are prohibited to involve in the crypto service offerings but they are allowed to participate in the crypto custody business as an Investor, and they are also allowed legally to engage with the local crypto companies as a financial services support partner. 

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