South Korea warns securities firms on crypto work under finance-virtual asset separation rule

South Korea’s financial authorities urged securities firms to ensure any cryptocurrency-related business does not violate the principle separating finance and virtual assets, according to Yonhap. The Korea Financial Investment Association sent a business letter titled "Precautions when pursuing virtual asset-related business" to securities firms on July 30 at the request of South Korea’s Financial Supervisory Service. The association said cases of business partnerships between securities firms and crypto exchanges have recently been increasing, and warned that services could be restricted if the arrangements conflict with the separation principle or qualify as outsourced operations.