Major banks in South Korea urge the new government to revise encryption regulations to actively participate in industry competition.

Gate News bot news, major banks in South Korea are urging the new government to amend financial regulatory laws that restrict their participation in the virtual asset sector, indicating that banking institutions are looking to compete more effectively with technology companies and enter the rapidly growing non-bank market.

The Bank Association of Korea revealed on Tuesday that the organization recently held a strategic meeting with senior leaders of major banks. The meeting proposed a proposal calling for regulatory reforms to allow traditional financial institutions to participate more directly in the digital asset economy.

The association stated: "Regulatory reform is necessary so that banks can enter the virtual asset business based on their credibility, accessibility, and strong consumer protection standards."

This moment coincides with the power transition of the South Korean president. After months of political turmoil and the impeachment of President Yoon Suk-yeol, voters cast their ballots on Tuesday to elect a new leader. The banking sector views this leadership change as an opportunity to drive long-stalled reforms. It remains unclear when the results will be announced.

In May of this year, the South Korean authorities introduced new regulations for the management of digital asset trading, which will take effect in June, allowing non-profit organizations and virtual asset exchanges to sell cryptocurrencies, provided that they comply with stricter information disclosure standards and meet more stringent listing requirements.

Source: Cryptonews