Bitcoin Derivatives Could Soon Be Allowed in South Korea
- Advising the government on new tech policies, the PCFIR recommended the development of crypto derivatives in the country.
- The committee further suggested that Bitcoin should be directly listed on Korea’s only securities operator, the Korean Exchange.
A South Korean advisory body has recommended that the country should allow financial institutions to launch cryptocurrency-based financial products, Business Korea reported on 6 January.
According to the report, the Presidential Committee on the Fourth Industrial Revolution (PCFIR) proposed that cryptocurrencies are brought into the mainstream, and that products such as Bitcoin derivatives should be allowed.
With crypto trading surging around the world, the PCFIR commented:
“As of May 2019, daily crypto-asset trade hit more than 80 trillion won (about US$69 billion) in the world, so it is no longer possible to stop crypto-asset trade.”
The committee further stated that in order to avoid relying only on foreign custodians, the Korean financial sector should develop and introduce custody solutions in the country.
It also said that the government should create a licensing scheme or guidance when it comes to cryptocurrency exchanges, and also start integrating crypto-assets products into the financial system.
The committee also suggested that the leading cryptocurrency by trading volume, Bitcoin, should be listed on Korea’s only securities operator, the Korean Exchange, and that the terms “cryptocurrency” and “virtual currency” could be unified under the “crypto assets” term.
Created in 2017 by a presidential decree, the PCFIR advises the South Korean government on policies relating to new technologies, and making recommendations regarding the development of new science and technologies in the country.
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- One of the largest South Korean commercial banks, KEB Hana Bank, partnered with crypto custodian BitGo in order to set up a new crypto custody venture in the country.
- The new venture, which will use BitGo’s crypto security expertise and Hana’s experience in financial services and compliance, is expected to launch in the second half of 2024.
- The now arrested Terraform Labs CEO had reportedly converted the majority of his illicit funds into BTC using foreign exchanged not under the jurisdiction of South Korea.
- While none of the assets tied to Do Kwon were recoverable, South Korean authorities continue to seize assets and properties tied to other executives of Terra.