🧠 Food for thought

Implications, context, and why it matters.

Korea’s AI fund lacks clarity on blockchain eligibility

• Charles Hoskinson welcomed Korea’s ₩100 trillion AI fund 1, yet the program’s rules for blockchain projects remain murky. Announced in 2025, it runs two tracks with risk-sharing between public and private investors, and it targets robotics plus automotive AI 2. It also covers consumer electronics and smart factories 2.
• Thirty flagship projects split between 15 AI efforts and 15 in advanced materials plus clean energy, which leaves blockchain-AI convergence uncertain since allocations omit blockchain infrastructure plus decentralized AI systems 2.
• The national AI committee, chaired by the president, coordinates strategy and investments 2. Policy analysts question its power to push regulatory changes, and urge that sectoral ministries keep the rulemaking role 3.

Regtech providers can benefit from Korea’s evolving digital asset compliance rules

• As the Digital Asset Basic Act moves from passage to rollout, compliance vendors see room to grow. DABA complements the Virtual Asset User Protection Act by clarifying licensing, reserve, plus operational duties for stablecoin issuers and digital asset firms 1.
• Lawmakers plan prudential rules for stablecoin issuers, with reserve backing and audits under Financial Services Commission oversight, while the Bank of Korea weighs monetary stability 4. Details remain in talks, and foreign virtual asset service providers that serve Koreans must report activity that affects Korea to the Korea Financial Intelligence Unit under the Act on Reporting and Use of Certain Financial Transaction Information 1.
• Demand rises for tools such as Know Your Transaction monitoring and reserve attestations. Firms also need custody platforms, compliance software, and identity checks. Compliance software rounds out the list. Drafts add minimum capital for stablecoin issuers, with one bill at ₩500 million 4.