Major Crypto Regulation Changes in South Korea

Some new Cryptocurrency policies will be introduced in a major restructuring in South Korea’s top financial regulator. The country is also planning to introduce an agency that will only deal with financial innovations such as Cryptocurrencies. South Korea has also entered into an agreement with China regarding the virtual currencies and initial coin offerings. Meanwhile, the country’s crypto exchanges and banks are expected to renew real-name contracts at the end of this month.

The Financial Services Commission (FSC) to Undergo Restructuring

The Financial Services Commission (FSC) has reported that it is planning to undergo a major administrative restructuring that will see the introduction of a department dedicated to the country’s Blockchain sector. South Korea’s main financial regulator’s new department, the Financial Innovation Bureau will operate for two years.

The Korea Times said the establishment of the new agency is part of the regulator’s restructuring plan to become a leader in financial innovation in the forthcoming Fourth Industrial Revolution age. The paper added that the move will help in nurturing the country’s Fintech technology, especially in the virtual currencies and Blockchain technology.

The agency has said that the restructuring has been introduced with the aim of protecting finance consumers. FSC has said the new Financial Innovation Bureau will also be responsible for policy initiatives in financial innovation. This will include using big data or Fintech to develop financial services and reaction to new developments like the virtual currencies.

Financial Supervisory ServicesSeoul And Shanghai Enter Into An Agreement

Financial Supervisory Services (FSS) has entered into an agreement with the Insurance Supervision and Management Committee of the Bank of China to merge the Financial Cooperation Agreement. Last, week, Chosun, a South Korean newspaper reported the meeting between FSS’s First Senior Deputy Governor Yoo Kwang-yeol and the chairman of the Chinese committee.

The two organizations first interacted when the South Korean body was reviewing the process of opening the country’s insurance companies in China. The news outlet said that the two agencies will work towards collaborating in internal control of financial organizations and anti-money laundering through expanding information sharing and monitoring experience.

Blockchain Firms Now Eligible for Tax Benefits

The Korea Times has reported that the meeting of South Korea’s ministers on economic policies has agreed to kick-start the nation’s investment incentive system. The new list of emerging technologies qualified for the incentive includes Blockchain. According to the paper, the government has taken the decision to address the investment burden faced by businesses using this new technology.

Renewal of Real-Name Account Contracts

At the end of January, Seoul enacted the real-name system for the virtual currency trading accounts. Money Today says that the agreement between the exchanges and the financial institutions on the issuance of real-name accounts is renewed every six months. The contracts will be renewed at the end of this month after the expiry of the existing ones. The frequent renewal is done with the aim of encouraging the exchanges to fight money laundering.

Four South Korean exchanges namely Korbit, Coinone, Bithumb, and Upbit have real-name account contracts. Three banks, Shinhan Bank, Nonghyup Bank, and IBK provide the real-name account services in the country.