The Legal and Regulatory Review for the Finternet Proposed by the BIS

The Bank for International Settlements(BIS) has proposed a vision for the finternet in April 2024. According to the BIS, the finternet is the multiple financial ecosystems interconnected with each other, much like the internet, designed to empower individuals and businesses by placing them at the center of their financial lives. Finternet brings the way for a user-centric, unified, and universal financial ecosystem brought into the digital era that is inclusive, innovative, participatory, accessible, and affordable, and leaves no one behind. The envisioned system leverages innovative technologies such as tokenization and unified ledgers to dramatically expand the range and quality of financial services. This integrated system aims to foster greater participation, to offer more personalized services, and to improve speed and reliability, all while reducing costs for end-users. For the safety and soundness of the finternet, this paper outlines an efficient economic and financial architecture, the application of cutting-edge digital technology, and a robust legal and governance framework. From a perspective of Korea, this paper serves as a call for action for the finternet. Korea's financial system and related legal framework are currently distributed by asset, transaction and function, and a new digital financial system such as finternet has not yet been considered. Now, it is time for Korea to actively consider the finternet. It is necessary, therefore, that Korea needs to gradually and sequentially adjust the legal and regulatory framework for the finterent based on financial innovation and digital financial infrastructure.