Three blockchain-based services to be tested in South Korea’s FSC’s regulatory sandbox

South Korea’s Financial Services Commission (FSC) has announced nine additional financial services that have been approved to be tested in the financial regulatory sandbox.

The FSC launched the sandbox on April 01, 2019 as the Special Act on Financial Innovation Support came into effect, and subsequently announced the first cohort of financial service providers accepted into the sandbox.

In an announcement dated May 02, the FSC said that it designated nine additional financial services as ‘innovative financial services’ to be accepted into the first cohort. It said that it received a total of 105 applications, of which 18 are now selected for the sandbox.

Of these 18 services, three are focused on using blockchain technology. This includes

• Stock lending platform based on blockchain technology offering stock lending and borrowing services for individual investors (Directional)
• A blockchain technology-based financial service that computerizes and updates the list of shareholders of non-listed SMEs, and provides assistance for P2P over-the-counter trading of such stocks. (KOSCOM)
• A blockchain technology-based financial services that issues and distributes mortgage-backed securities (MBS) in a form of electronic securities. (Kasa Korea)

The FSC said that additional application for the financial regulatory sandbox will begin at the end of June.