In a new initiative, South Korea is working towards an organizational change that would create a dedicated department for establishing and regulating crypto policies with the crypto regulation agreement. Working in harmony with the Chinese authorities, the policies have been chalked down. In an interview with the Korea Times, the South Korea’s Financial Services Commission representative disclosed that it is a part of a significant restructuring that will create an exclusive higher level department to handle policy initiatives for the Blockchain industry.
Financial Innovation Bureau will be the department of policy regulations and will help build a stronger and regulated industry for cryptocurrency in South Korea. The department will be overseeing the disruptive technology regulations like fintech and big data that are leading to more innovation but are currently facing a lot of challenges in acceptance.
In a recent meeting of Yoo Kwang-Yeol, the Senior Deputy Governor of FSS, Korea met the higher officials of Insurance Supervision and Management Committee of the Bank of China and created the first draft of the agreement according to which they both will generate and regulate the polices for FIB. The meeting spokesperson stated that the joint initiative aims to regulate money laundering, which is becoming more prevalent as ICOs and blockchains increase.
The new crypto regulation agreement recognizes blockchain as an emerging technology and adds it to the list of tax-benefit industries. The real-name system, implemented at the end of January 2018, will expire according to the contract, but stakeholders have called for a renewed contract to control money laundering. Currently, Upbit, Bithumb, Korbit, and Coinone are the only exchanges using the real-name contract benefit, with three nationalized banks providing the real-name service. The initiative focuses heavily on creating a common crypto regulation agreement to help the ecosystem thrive.
