South Korea Sets Up A Regulatory Body For Cryptocurrency

Jul 21, 2018 at 04:15 Update Date :Jul 21, 2018 at 04:15 UTC

South Korea’s primary financial regulator announced on Tuesday that it will set up a new policy-making organisation tasked with caring for Korea’s FinTech industry, with specific focus to policies regarding the country’s cryptocurrency and blockchain industries, which is once more a new boost to the country’s digital asset sector.

The Financial Services Commission (FSC) is now ready to open their new department, dubbed the Financial Innovation Bureau, which will be responsible for actively helping the FinTech industry and for formulating policies for the the crypto-sector in the country to be able to make new financial innovations and respond better to all the new developments in the crypto market.

A cabinet meeting of the FSC and the Ministry of the Interior and Safety held this week saw this decision take place, while organisational changes happen in their backdrop to provide better safeguards to investors, and helping grow all of the financial and technological innovation brought by altcoins.

The FSC explained in a statement saying “the new Financial Innovation Bureau will also be tasked with policy initiatives for financial innovation, such as innovating financial services using FinTech or big data, and responses to new developments and challenges such as cryptocurrencies.”

South Korea has recently seen its government make a wave of policies, all of which aim to make the country more crypto-friendly. Earlier this week, the government had decided on the waiving of taxes for startups in order to help boost upcoming altcoin technologies. Once all ministers from the 8 governmental agencies had concluded on the issue, the announcement was made on Wednesday. According to reports, the ones to benefit from these tax waivers would be companies dealing directly with evolving altcoin technologies.

The government has already validated the cryptocurrency sector as a legitimate industry. Additionally, the Korea Blockchain Association had permitted 12 crypto exchanges to have kept their required amounts of security systems as well as international management systems. It is hoped that this action will eventually serve to raise the capital inflows into the crypto market.

In spite of an ICO ban in their country, South Korea is planning to loosen up earlier restrictions in allying with the larger G20 decision of a uniform global regulation system among member states. According to the report from the Korea Times, the regulator’s position is ‘believed to side with the Financial Stability Board’s recent report that claimed crypto assets ‘do not pose a material risk to global financial stability.’

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