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. As stated by the spokesperson for the meeting, the joint initiative has been taken to regulate the money laundering that is becoming more prevalent with increasing ICO’s and blockchains.
According to the new crypto regulation Agreement, the Blockchain is an emerging technology and will be added to the list of tax benefit industries. The real-name system that was implemented in end of January 2018 will expire as per the contract, but a need of renewed contract has been raised so that the money laundering can be controlled. Currently, the real-name contract benefit is being utilized only by Upbit, Bithumb, Korbit and Coinone and only three nationalized banks offer the real name service.
The initiative is highly focused on creating a common crypto regulation agreement to help the ecosystem thrive.
