• Sun, 19 May 2019, 08:21 PM
  • All times are UTC
  • Edition:
Link copied

South Korea’s FSC seeks to open banks’ financial payment network to fintech firms

Image: Flickr

Thu, 28 Feb 2019, 04:36 am UTC

South Korea’s Financial Services Commission (FSC) has proposed a plan to establish an open banking system which would grant fintech firms access to banks’ payment network.

The existing financial payment network has a closed system which could only be accessed by banks.

In an announcement dated February 25, the FSC said that it is seeking to encourage the development of new payment services and greater competition in the financial sector. On these lines, it has proposed to make the transition to an open system in a phased manner.

The first phase will see banks’ voluntary agreement on the open banking system. This would involve opening of the banks’ payment network to all fintech payment service providers as well as other banks. As a result, customers would be able to use a single application to access their accounts at different banks and make payments.

“Banks will finalize details about their voluntary agreement on the open banking system in the first half of 2019 (scheduled to be in a full operation in 2019),” it said.

In the second phase, the FSC will propose amendments to the Electronic Financial Transaction Act to provide clear legal grounds for the open banking system. It said that it will submit its proposal to amend the act in the third quarter of 2019.

“Under the new regulatory framework, licenses on electronic financial business will be granted on a business-function basis, rather than a business-sector basis, to better reflect diversification of payment services sector –e.g. payment initiation service provider (PISP) and E-money business providers,” it said.

In the third phase, the regulator said that it will consider allowing qualified fintech payment service providers direct access to the payment system without relying on banks’ services.

The country’s National Assembly passed legislation called the Financial Innovation Support Act in late 2018, which will come into effect in March 2019. The FSC plans to launch a financial regulatory sandbox in April 2019, allowing fintech companies to test their innovative services with regulatory exemptions for a certain period of time.

<Copyright © TokenPost. All Rights Reserved. >

The commenting service is available only after having logged in.
  • Bitcoin (BTC) $7,957.47 (+9.23%)
  • Ethereum (ETH) $254.76 (+7.97%)
  • XRP (XRP) $0.403500 (+8.01%)
  • Bitcoin Cash (BCH) $415.00 (+14.73%)
  • Litecoin (LTC) $94.32 (+8.27%)
  • Bitcoin (BTC) $7,957.47 (+9.23%)
May 17, 2019 (Friday)
Crypto Technicals: XMR/USD holds 21-EMA support, bearish divergence on RSI and Stochs weighs
Crypto Technicals: ETH/USD hovers around 5-DMA, overbought conditions may lead to further unwinding
Banking giants to invest $50M in blockchain-based settlement project: Report
Crypto Technicals: BTC/USD extends correction, eyes 5700 on break below 21-EMA support
Crypto exchange Coinbase in talks to acquire Xapo for $50M: Report
Blockchain startup Ripio launches crypto-fiat exchange and OTC desk
Sirin Labs allows FINNEY users to purchase crypto with credit cards via Simplex integration
Crypto-backed Brave Browser seeks over $30M in funding round: Report
Cryptocurrency exchange Bitfinex granted motion to modify injunction
Poloniex to stop offering 9 crypto assets in U.S. over regulatory uncertainty
ECB invites paper submissions on crypto, stablecoin, and DLT for payments conference
Louis Vuitton owner LVMH unveils blockchain provenance platform ‘AURA’ for luxury industry
Industry groups, fintech want Reserve Bank of India to consider including cryptocurrency in sandbox
HKMA, BoT enter fintech collaboration, hint at joint central bank digital currency project
French Producer Dominique Boutonnat recommends blockchain technology in the film industry
Quoine-owned Liquid ties up with Virtual Currency Partners to enter US market
One-third of the world’s Ether is owned by only 376 people: Chainalysis
May 16, 2019 (Thursday)
Crypto Technicals: Bitcoin Gold consolidates below 61.8% Fib, 'Golden Cross' keeps bias bullish
Crypto exchange Seed CX adds support for PAX, USD Coin and TrueUSD
Crypto Technicals: ETH/USD edges lower from 8-month highs, potential 'Shooting Star' keeps scope for weakness
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.