South Korean Presidential Commission Wants into Bring Crypto Into Mainstream Finance

Financial institutions must be permitted to provide cryptocurrency products such as derivatives, as shown by a government advisory body in South Korea.

In a fresh report, the Presidential Committee about the Fourth Industrial Revolution (PCFIR) suggested the government could proceed to bring cryptocurrencies to the mainstream of fund by means of a number of measures, such as derivatives.

With cryptocurrency trading Growing globally, “it is no longer possible to stop crypto-asset trade,” stated the PCFIR, according to a report by Business Korea on Monday.

The commission said the authorities could follow the lead of U.S. regulators and sanction items like futures contracts tied to bitcoin. Institutions are also permitted to provide other cryptocurrency services for example trading.

“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,” the commission stated in the report.

To support this type of transfer, the country’s fintech industry should develop custody alternatives for cryptocurrency to prevent a reliance on overseas custodians, ” said the PCFIR.

Addressing crypto imports, the commission said the authorities should explore earning a licensing strategy or advice. The sector is presently loosely controlled via advice given to banks along with also a South Korean monetary watchdog beneath the Financial Services Commission is also allegedly aiming to directly oversee trades.

Other proposals in the PCFIR contained, especially, that bitcoin could be directly recorded on Korea Exchange, that the country’s securities bourse, and which the conditions “cryptocurrency” and “virtual currency” may be drawn together under the umbrella expression crypto assets.

The PCFIR was put up in 2017 to advise on policies regarding new technologies and also help lay the groundwork for related new businesses and services.

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