South Korea Plans to Regulate Digital Asset Custody as Independent Business

According to the Financial Commission, South Korea will submit the second-phase legislative bill for the Digital Assets Basic Law and establish a separate regulatory framework for digital asset custody services. The commission said it will adopt a cautious approach to mandatory exchange custody business separation, preferring to strengthen behavior regulation to prevent conflicts of interest. South Korea will also streamline approval processes for traditional financial institutions applying for virtual asset service licenses, referencing the European Union's approach.
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