South Korea’s largest bank and six other competitors are planning to launch crypto exchanges as early as next year. The rush of South Korean banks to crypto exchanges is explained by the regulatory relaxation announced and promoted by the new head of state Yun Seok-yeol.
Another step into the world of crypto exchanges for 7 South Korean banks
According to local newspaper Newspim, seven banks operating in South Korea are working to obtain the required approvals to launch cryptocurrency exchange operations in the first half of next year.
The seven companies have applied for preliminary approval from the Financial Investment Association for the creation of platforms.
Currently, the discussions necessary for the implementation are being finalized and I am very optimistic.Un responsable d’une des 7 banques
For the moment, only two applicants, and not the least, are known:
- Mirae Asset Securities: which is the largest investment bank by market capitalization in South Korea, with $648 billion in assets under management.
- Samsung Securities: which is conducting studies on how best to enter the crypto ecosystem, after its unsuccessful attempt to set up a cryptocurrency trading platform last year.
Legislation that facilitates investment in crypto
Following the example of these seven banks, more and more institutional players operating in South Korea are turning to the crypto ecosystem. This influx into cryptocurrency seems to be motivated by the relaxation of industry regulations envisioned by the government of new President Yun Seok-Yeol.
To realize the unlimited potential of the virtual asset market, we must revise regulations that are unreasonable and far from reality.Yun Seok-Yeol, President of South Korea during his election campaign
The South Korean head of state, who came to power last May, has even obtained a two-year postponement in the implementation of the taxation of virtual currencies. He believes that the basic law on digital assets must first be adopted as the Financial Investment Association, a powerful syndicate of crypto investors in the country, keeps asking.
In this sense, the Financial Services Commission (FSC) plans to adjust the regulations on cryptocurrencies in order to attract more investors to the sector. According to the FSC, this regulatory easing will not only have to advance the Digital Assets Framework Act but could also move domestic virtual assets to securities status.
As one South Korean securities official put it, “asset trading is actively taking place around the world and the market size is increasing year by year. Thus, it is in the interest of states to align legislation with the innovation brought by the crypto sector in order to take advantage of this new emerging market. South Korea seems to be one of the countries in the world to have understood this.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.