Korbit Research Center Publishes Report on "Policy Recommendations in Response to Changes in the Financial Environment"

Korbit Research Center, a subsidiary of the virtual asset exchange Korbit, announced on the 23rd that it has published a report titled "Policy Recommendations in Response to Changes in the Financial Environment" to help the new government formulate its digital asset (virtual asset) industry strategy.

This report presents three key tasks necessary to support the newly forming regulatory environment centered on the Digital Asset Basic Act and to ensure the stable integration of Korea's virtual asset industry into the institutional framework.

The first task is a "flexible reinterpretation of the separation of banking and commerce principle." Currently, Korea's separation of banking and commerce principle aims to promote financial stability by restricting the combination of financial and industrial capital. However, in the era of digital transformation, this principle has become a structural obstacle that hinders collaboration between the virtual asset industry and the financial sector.

In major countries such as the United States and Europe, banks are actively forming strategic alliances with the virtual asset industry through minority equity investments or the establishment of subsidiaries. In contrast, direct participation by Korean financial institutions is effectively blocked. Korbit Research Center recommended a flexible reinterpretation of the separation of banking and commerce within the scope of meeting standards for public interest and risk management.

The second key task identified is "collaboration to secure advanced infrastructure." The report emphasizes the importance of custody infrastructure to attract institutional investors. It explains that in order for traditional financial institutions to strategically participate in core infrastructure such as custody, tokenized assets, and payment networks, it is necessary to ease regulations on the establishment of subsidiaries and equity investments.

Lastly, the report proposes "clarifying the governance of virtual asset regulation." Currently, overlapping roles among relevant ministries such as the Ministry of Economy and Finance, the Bank of Korea, and the Financial Services Commission are causing policy confusion in Korea. The report stresses the urgency of unifying the lead ministry, dividing roles by function, and establishing a permanent consultative body, and suggests benchmarking overseas cases such as the United Kingdom, Switzerland, and the UAE.

Choi Yoonyoung, head of Korbit Research Center, stated, "Since the virtual asset ecosystem is based on the convergence of finance, technology, and industry, there are limits to responding with only the existing separation of banking and commerce principle or a single regulatory approach. Regulations should be revised to enable strategic collaboration between the financial and virtual asset industries, and a governance system should also be established to coordinate responsibilities among relevant agencies."