Categories: Industry

South Korea FSC Plans to Reorganize for Crypto Market

The existence of cryptocurrencies today has changed the way we look at finance. It becomes possible to get rid of the third party that is involved in verifying the transactions thanks to the underlying technology behind cryptos. Blockchain technology has the potential to be applied to different businesses. And because of this, Bitcoin along with other cryptos became popular especially in 2017.

Cryptocurrencies have become popular in South Korea to the point that Kimchi Premium is the norm when it comes to buying coins. It means that investors pay more for a certain coin. And because of its popularity, South Korea’s Financial Services Commission, which is the country’s regulatory authority is looking to develop the blockchain space. What it plans to do is to restructure itself and build the Financial Innovation Bureau in order to “proactively respond to financial innovation in the fourth industrial revolution era”.

In a statement by the regulatory body, “The FSC plans a major organizational reshuffle to better protect financial consumers and proactively respond to financial innovation in the Fourth Industrial Revolution era”.

What it means is that the bureau is going to come up with new policy changes. Its goal is to advance financial services using big data, fintech, and even take a closer look at the development and challenges that are related to cryptocurrencies.

Not a Risk

And also, the international Financial Stability Board issued earlier this week that “Bitcoin and its fellow cryptocurrencies are not material risk to the economy on a global level”. The report also mentioned that there should be a lenient approach when it comes to cryptos. And South Korea is one of the members of the FSB.

The reorganization of the FSC is good news for the blockchain industry. Fanthom Foundation which is a blockchain based company in South Korea said that “Virtual coin and related blockchain technologies will come to our everyday life sooner or later. I think Korea can be an ideal incubator to test drive new virtual coins and their blockchain systems. Now, it is the government’s role to establish a favorable environment for virtual coins and their blockchains”.

Regulatory Clarity

Regulators are scrambling towards making sure that the crypto space is regulated at this point. Not just South Korea, Japan is also looking to protect their investors especially following hacks. These days, crypto exchanges will have to deal with updated rules. And for this reason, it has been seen by many experts as a positive sign in the crypto space.

And though regulations made cryptos drop in price, slowly, there is progress on the part of the market. US SEC even considered Bitcoin and Ethereum, not as securities but commodities. And this gives a lot of people peace of mind.

There are those experts that are saying that Bitcoin is going to exceed its all-time high this year. And since we only have 6 months left for 2018, it is actually intriguing to see what the next few months have in store for all of us. Will Bitcoin be able to rally back up after all the regulatory adjustments in recent months not to mention the potential entry of institutional investors?

Mark Ayesa

Mark manages our editorial team, social handles and is always on the lookout for great writing talent to contribute to our site. On a day-to-day basis he ensures the content on CryptoCurrency365.com is of the highest quality and also carries out extensive research on any current hot topics of the crypocurrency world for our writers.

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Mark Ayesa

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