A national committee sanctioned by the South Korean President wants the country to take crypto mainstream. The Fourth Industrial Revolution Commission has submitted suggestions to the government to allow financial institutions to launch crypto products. The commission also believes that Korea risks falling behind countries like the U.S. and Switzerland if it doesn’t move fast.
Digital finance is taking over and with it, cryptos are becoming more integrated into the financial services industry. The Korean government should therefore allow interested companies to launch financial products tied to crypto prices as the U.S. has done. As Business Korea reports, the commission also believes the country’s financial sector must come up with a national crypto custody solution to avoid reliance on foreign services.
In a document published recently, the commission also suggested that cryptos should be directly listed on the Korea Exchange. The Asian giant should also allow the launching of Bitcoin derivatives.
Cryptos have become a force to be reckoned with, the committee pointed out. The government must thus introduce business licenses for crypto businesses, as well as regulations for the industry. This will allow the integration of cryptos into the financial system in the long term while allowing the protection of investors. The committee pointed to countries that are making leaps in this regard, including the U.S. and Switzerland. South Korea should learn from these to create a conducive environment for cryptos or risk falling behind.
Financial institutions will be crucial in taking cryptos mainstream. The government should allow these institutions to handle cryptos and encourage them to develop state-of-the-art custodial solutions. The report stated:
Participants in the traditional capital market such as securities firms and banks should develop and introduce domestic custody solutions to handle crypto assets so that the Korean crypto-asset custody market will not depend on foreign countries. The Korean government has to gradually allow institutional investors to deal in crypto assets and promote over the counter (OTC) desks dedicated to institutional investors’ trade.
South Korea is still one of the world’s largest crypto markets, with exchanges like Bithumb and Upbit being some of the most recognizable globally. In November 2019, the country’s national assembly approved a legislation geared towards laying a foundation for crypto legalization. The legislation recognized cryptos as assets, giving them a legal status.
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