Another good news for crypto supporters in South Korea! The committee in SK finally suggested creating different measures to the government to ensure that cryptocurrency would be conventional. This new plan will permit various financial agencies in the country to present crypto products and services.

Cryptocurrency in Korea’s Financial System is on Its Way

The South Korean Presidential Committee was brave enough to recommend a series of pro-crypto measures to the SK government. The group aims to motivate the government to incorporate crypto into the financial system of the country. This new move will enable financial organizations to provide a broad spectrum of products that are centered to cryptocurrency.

But what are the recommendations included in the said proposal? One of the suggestions is to enable financial agencies to provide their own crypto-related products or services. The committee wanted the government to adopt the same methodology the financial institutions in the United States did a few years ago.

But wait, there’s more. It’s also worth mentioning that the Presidential Committee wanted to list Bitcoin on Korea Exchange (KRX). This idea would provide a lot of benefits to traders in the country.

In the past, the U.S Commodity Features Trading Commission permitted various cryptocurrency derivatives items. Several names have already been providing these features on the market. This includes the Bakkt that started delivering physically-settled bitcoin features last September.

Other Proposals by the Presidential Committee

The South Korean Presidential Committee also suggested the government if they can initiate business guidelines of licenses for crypto exchanges. They also mentioned different initiatives by the financial agencies in Switzerland and the United States to support their ideas.

Of course, the committee didn’t want to rely on foreign custodians throughout the stage of managing the crypto assets. Therefore, they stated that the participants in the standard capital market must create and present domestic custody solutions to harness assets. This is pursued, so the crypto-asset custody market of the country won’t rely on the foreign nations.

According to the released statement, the government of South Korea will permit institutional investors to manage crypto assets gradually. They will also allow them to market OTC desks that are dedicated to the trade of institutional investors. They also plan to suggest various crypto-related terms. This might include virtual currencies and cryptocurrencies. The committee had commended the Korean government for developing the legal statue of crypto before releasing the document. The goal was to proceed with accounting and tax measures.

The committee stated that the existing policy of the government concentrating on limiting cryptocurrency speculation had lowered its global competitiveness within the crypto and blockchain areas. What’s more, the legal status of crypto in the country is essential to amend the tax law of the land.

The good thing is that all crypto profits aren’t taxable in the country until the time the tax law is revised, according to the statement released by the South Korea Ministry.


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