The South Korean Government Kicks off FinTech and Bitcoin Reforms

By Daniel Zo Bitcoin, South Korea, Fintech

During the last couple of years, the state of bitcoin in South Korea was quite unclear, due to a set of laws that cannot be easily interpreted. Yet, this is about to change, as the South Korean Government is trying to break its rigid financial laws, and come up with better ones, suited for the financial environment that we live in.

With this in mind, the Chairman of the South Korean Financial Services Commission, also known as the FSC, recently carried out a presentation, introducing a project named ‘The FinTech Development Roadmap’. With this in mind, this development roadmap is supposed to remove all of the irrational regulations present in the legislative framework, but also find ways to change up and revamp the systems being currently used, in order to make more room for the FinTech technology that will soon hit the market.

South Korean Financial Services Commission

Not only this, but he also disclosed that the FSC has plans to raise their policy loan support to roughly $879 million, from $439 million. This will hopefully allow South Korea to develop their very own, blockchain-based and bitcoin-like infrastructure during the next couple of years. According to the chairman of the FSC, it seems like the initial research along with the joint testing process have already begun.

Regardless of South Korea’s move towards bringing a blockchain-based financial world closer to reality, they have maintained a balanced stand when it comes down to bitcoin. With this in mind, South Korean regulators have imposed no laws against bitcoin users and digital currency startups, and have never attempted to limit their growth process. However, the statements of the chairman do say that some form of definition needs to be given, and that a non-intrusive, legislative framework may need to be developed.

Thanks to the ‘financial regulation test bed’ system, bitcoin-based startups will remain unaffected due to the legal hassles, as the South Korean legislative body carries out its research and attempts to give bitcoin a legal definition, while also coming up with ways to fix other issues such as security, AML and taxation. To put things better into perspective, the financial regulation test bed system will allow fintech companies in the country, to operate without needing a license, before the regulations are finished up, and implemented.

The FSC continued by stating that they will offer a complete Bitcoin regulation framework, once the first quarter of 2017 arrives. This has angered a couple of digital currency users, but it’s important to keep in mind that this framework is only meant for digital currency companies, who earn their profits directly in the coin, and is meant for tax purposes, and a better protections of users and their privacy.

Based on everything that has been outlined so far, what do you personally think about South Korea’s approach towards bitcoin? Let us know your thoughts in the comment section below.