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South Korean Presidential Committee Wants to Bring Crypto Into Mainstream Finance

In a new report, the Presidential Committee on the Fourth technological revolution (PCFIR) proposed the govt could move to bring cryptocurrencies into the mainstream of finance through variety of measures, including derivatives.

With cryptocurrency trading surging worldwide, “it is not any longer possible to prevent crypto-asset trade,” said the PCFIR, as per a report by Business Korea on Monday.

The committee said the govt could follow the lead of U.S. regulators and sanction products like futures contracts tied to bitcoin. Institutions would even be allowed to supply other cryptocurrency services like trading.

“The Korean government has got to gradually allow institutional investors to deal in crypto assets and promote over-the-counter (OTC) desks dedicated to institutional investors’ trade,” the committee said within the report.

To support such a move, the nation’s fintech sector should develop custody solutions for cryptocurrency to avoid a reliance on foreign custodians, said the PCFIR.

Addressing crypto exchanges, the committee said the govt should check out bringing during a licensing scheme or guidance. The industry is currently loosely controlled via guidance given to banks and a South Korean financial watchdog under the Financial Services Commission is additionally reportedly getting to directly supervise exchanges.

Other suggestions from the PCFIR included, notably, that bitcoin could be directly listed on Korea Exchange, the nation’s securities bourse, which the terms “cryptocurrency” and “virtual currency” might be brought together under the umbrella term crypto assets.

The PCFIR was found out in 2017 to advise on policies concerning new technologies and help lay the groundwork for related new industries and services.

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