South Korea was in the news only a few days back when the Bitcoin Hardware Wallet’s demand was reported to have risen because of the higher investments in bitcoins in South Korea.
Now South Korea is making the headlines again in the Cryptocurrency news, as the country’s Financial Services Commission (FSC) has officially announced that they will be using Blockchain technologies for future fintech innovation with a focus on supporting new technologies instead of regulating them, local news outlet Korea JoongAng Daily reports today, March 21.
Choi Jong-ku, the chairman of the FSC, said in relation to the impetus for the FSC announcement that,
“the players in the financial service market are becoming more diverse, with new companies entering, and the competition in the financial market is becoming fiercer. As a result, existing financial companies are also making attempts with fintech to raise their services.”
Jong-ki also expressed that youngsters may enjoy certain advantages by working in a more contemporary environment of the Fintech market.
The FSC believes that the cut in the regulations on cryptocurrencies by the authorities may lead to more jobs as well as lower service charges, giving examples of fintech business improvements like offering customers the opportunity to buy investments over video chat and using crowdfunding for small businesses.
An app-to-app payment system is also to be approved by the FSC soon. This app-to-app payment would allow customers to buy products without using credit card companies or networks, although banks will still add charges for the transactions.
South Korea is no doubt, one of the world’s largest crypto markets which has begun regulating cryptocurrency in the country more strongly. In January 2018, the government decided to ban anonymous trading on crypto exchanges in order to ensure protection and lesser scams..
Following the South Korean government responded to a public anti-crypto regulation petition mid-February, underlining that there is no planned crypto ban in the country but that regulations are in place to prevent “any illegal acts or uncertainties.”