Web3 Alliance Caught in a Gray Zone of the 'Separation of Finance and Virtual Assets'... KFTC Review Becomes a 'Storm Center' [Crypto Briefing]

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\r\n[Financial News] The Korea Fair Trade Commission (KFTC) reportedly heard concerns from the securities industry that the principle of the 'Separation of Finance and Virtual Assets' could be undermined as it reviews Mirae Asset Financial Group's acquisition of the virtual asset exchange Korbit.
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According to the financial investment industry on the 1st, the KFTC conducted a 'stakeholder opinion inquiry' with more than 10 securities firms in March to assess the market impact of Mirae Asset Consulting, an affiliate of Mirae Asset Financial Group, acquiring Korbit shares worth 133.5 billion won for a 92.06% stake.
In this review, the KFTC is said to have checked whether the creation of an integrated trading platform for virtual assets and listed stocks could raise barriers to entry. Competitors reportedly raised the possibility that the 'Separation of Finance and Virtual Assets' principle could be weakened.
In the United States, financial firms are allowed to invest in virtual asset companies by category while maintaining the separation principle. In Korea, however, banks and securities firms are restricted from investing in or partnering with virtual asset companies. Financial authorities have also blocked the brokerage and listing of spot Bitcoin exchange-traded funds (ETFs) in the financial investment industry, while Korean won-based virtual asset exchanges and banks that issue real-name accounts are matched one-to-one, which is also seen as part of the same principle.
Mirae Asset Financial Group's decision to use the non-financial affiliate Mirae Asset Consulting as the vehicle for the Korbit acquisition is understood in the same context. Even so, major securities firms are said to have told the KFTC that, given the synergies with financial affiliates within the group, the move effectively circumvents the principle of separation.
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However, alliances between the financial sector and the virtual asset industry are already spreading rapidly. Korea Investment & Securities Co., Ltd. is cooperating with Bithumb and Coinone. Major financial firms, including Woori Bank (MoonPay), Hana Financial Group Inc. (Dunamu Inc. and POSCO International), and Shinhan Card (Solana), are also signing a stream of memorandums of understanding (MOUs) to build Web3 infrastructure.
In other words, depending on the standard the KFTC applies to the Mirae Asset-Korbit case, the market landscape for future Web3 alliances could change completely.
Meanwhile, according to KB Securities Co., Ltd., the global asset tokenization market is worth about $340 billion, including stablecoins. The real-world asset tokenization (RWA) market, excluding stablecoins, stands at $26.4 billion, more than 13 times larger than the $1.9 billion recorded at the end of 2023.
elikim@fnnews.com Kim Mi-hee Reporter