The financial regulator of South Korea, the Financial Services Commission (FSC), is set to establish a new department designated to govern policymaking initiatives specifically tied to the blockchain industry.
A Proactive Approach
South Korea seems to be taking a fairly active approach towards governing the field of cryptocurrencies. Earlier in May, it was reported that the country will abide by the G20’s unified digital currency regulations.
Recently, the country’s financial regulator, the FSC, announced that it will establish a department solely focusing on the blockchain industry. Local media reported that the decision was taken during a meeting with the Ministry of the Interior and Safety.
The new body will also take part in active policymaking. An FSC official said on the matter:
The FSC plans a major organizational reshuffle to better protect financial consumers and proactively respond to financial innovation in the Fourth Industrial Revolution era. – Adding that – The new Financial Innovation Bureau will also be tasked with policy initiatives for financial innovation, such as innovating financial services using fintech or big data, and responses to new developments and challenges such as cryptocurrencies.
Quick Positive Reaction
Quickly after the decision of the FSC went public, the industry responded positively. An official from FANTOM Foundation – a blockchain tech firm – noted:
I think Korea can be an ideal incubator to test drive new virtual coins and their blockchain systems. High-speed internet infrastructure is already here, unparalleled to any other country in the world. And the Korean people are very adoptive of technology. Now it is the government’s role to establish a favorable environment for virtual coins and their blockchains.
The move comes as part of the country’s plans to introduce regulatory clarity and further transparency into the field. In May, the country’s National Assembly proposed to allow local ICOs held under conditions which actively protect the investors. Furthermore, earlier in July, South Korea moved to recognize cryptocurrency exchanges as legal entities.
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