Business FSC chief signals Korea's growing openness to cryptocurrency
Published : Jan. 22, 2025 – 15:03:14
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With US President Donald Trump expected to be a powerful ally to the virtual assets industry, South Korea’s move to institutionalize cryptocurrency could accelerate, the chief of the country’s top financial regulator indicated Wednesday.
“Though Trump did not mention virtual assets in his inaugural address, the US is likely to be more proactive (about virtual assets), considering his past pledges,” Financial Services Commission Chair Kim Byoung-hwan said at a monthly press event at the Government Complex Seoul.
“We have been concerned about finding a balance between growth and investor protection in operating policies related to virtual assets,” he said. “But the policy shift in the US could lead to changes in other countries and we cannot neglect the international trend. We are gearing up to speed up the institutionalization (of virtual assets).”
When asked about allowing the issuance of real-name corporate accounts for virtual asset trading, Kim said the FSC would provide an answer as soon as possible.
While individuals can open accounts for crypto trading, corporate accounts are blocked by banks under financial authorities’ guidance. The FSC announced it would look into allowing corporate accounts with a phased-in approach in its annual work plan for 2025 shared on Jan. 8.
Though the virtual assets committee under the Financial Services Commission has held two meetings since its launch in November, the committee has not yet included the matter on its meeting agenda.
“Though the committee did not include the matter on its agenda last week, that does not mean it would not look into it. We will accelerate the discussion other matters as well, including stablecoins, which were not reflected in the first phase of the virtual asset law,” he said, referring to the Virtual Asset User Protection Act enacted in July.
At the press event, Kim further pressured banks to bring down loan interest rates, pricing in the recent base rate cuts executed by the Bank of Korea. The BOK slashed the key rate by half a percentage point in the fourth quarter of last year, and by an additional quarter percentage point this month, bringing the base rate to 2.75 percent.
“Thought (the BOK cut the rate twice last year), the banks are slow to bring down their rates,” Kim said. “This could have been impacted by the regulations related to controlling household debts at the end of last year, but in 2025, banks should reflect the cuts.”
Meanwhile, the FSC is to create a new fund program under policy lender Korea Development Bank to help curve concerns related to the Trump administration. The fund will be used to boost the competitiveness of high-tech industries, such as the semiconductors sector.
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