Copy link
Increase text size
Decrease text size
Link copied

South Korean Presidential Committee recommends allowing crypto derivatives

Tue, 07 Jan 2020, 10:11 am UTC

A South Korean Presidential Committee has proposed allowing financial institutions to launch cryptocurrency products, such as derivatives, Business Korea reports.

Launched in Oct. 2017, the Presidential Committee on the Fourth Industrial Revolution (PCFIR) deliberates upon and coordinates important policy matters pertaining to the development and acquisition of new science and technology, including artificial intelligence (AI) and data technology, as well as new industries and services necessary for Korean society’s adaptation to the 4th Industrial Revolution.

In its new report, the committee has made a number of recommendations with the objective of bringing crypto-related products into the financial system.

"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 PCFIR said.

Among these is included a proposal to bring various terms such as cryptocurrencies and virtual currencies under the term “crypto assets.”

Furthermore, in a bid to encourage the blockchain and crypto industry, the PCFIR has urged the government to allow financial companies to launch futures products based on Bitcoin prices. It has also proposed the listing of Bitcoin directly on the Korea Exchange (KRX).

The committee has also called upon the financial sector to develop a domestic cryptocurrency custody solution to avoid the dependence on foreign solutions.

Importantly, it has advised the government to consider introducing a business licensing regime for crypto-asset exchanges and guidelines for this emerging sector.

"The Korean government has to gradually allow institutional investors to deal in crypto assets and promote over the counter (OTC) desks dedicated to institutional investors’ trade,” it added.

Last November, the National Assembly’s national policy committee passed a bill that aims to create a legal basis for cryptocurrencies in the country. The bill will categorize cryptocurrencies as digital assets and require crypto businesses to report to and register as digital asset businesses with the Financial Services Commission’s (FSC) Financial Intelligence Unit (FIU).

More recently, reports suggested that South Korea is currently looking to tax capital gains from cryptocurrency transactions. The Ministry of Economy and Finance is expected to introduce a bill on these lines in tax regulations this year.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $13,100.70 (+1.41%)
  • Ethereum (ETH) $417.16 (+5.45%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $270.48 (+4.37%)
  • Chainlink (LINK) $12.11 (+10.42%)
  • Bitcoin (BTC) $13,100.70 (+1.41%)
Feb 21, 2020 (Friday)
12:01
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
12:00
Brazil to launch new payment system in response to cryptocurrencies
11:59
Digital currency exchange Coinbase Pro lists Kyber Network token
11:57
Norwegian Air to soon start accepting crypto payments
10:21
Swedish central bank begins CBDC pilot with Accenture
09:51
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
14:16
Telecom companies complete cross-carrier mobile payments using blockchain
11:53
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
11:00
South Korean ICO project discontinued, to return $7.5M to token holders
10:36
Samsung maintains crypto support in soon-to-launch Galaxy S20
09:41
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
09:15
Coinbase becomes first crypto company to receive Visa principal membership
08:59
Dubai Economy and six banks launch KYC Blockchain Consortium
08:26
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
07:12
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
06:13
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
05:02
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
04:56
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
04:35
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
12:46
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft