Cryptocurrency enthusiasts have something to smile about, especially in South Korea. A committee, directly under the president, hasprovided several recommendations on measures that the government can put in place in order to make cryptocurrencies mainstream. The committee believes that there is simply no way to stop the trade of cryptocurrency assets.
The main recommendation from the committee is the integration of crypto within the South Korean financial system. As a result, it will allow financial institutions to offer a variety of crypto products directly, as well as derivatives, the listing of Bitcoin in the stock exchange, and many other options.
Positive Crypto Measures in South Korea
The committee, known as the South Korean Presidential Committee on the Fourth Industrial Revolution, works under the president directly. They have come up with multiple pro-crypto recommendations and have presented them to the government. The committee has urged the government to embrace the integration of cryptocurrency into its financial system. It is seen as a move that will enable financial institutions to expand their operations in terms of how much they are offering to the people. It will also work in a more straightforward way in terms of adopting cryptocurrency into the country.
In the recommendations, the committee goes on to explain that the financial institutions in the country will be in a position to offer Bitcoin derivatives within their systems as well as other crypto-products of choice. This comes as both a long and medium-term strategy in institutionalizing digital currencies.
In addition to having Bitcoin derivatives available in South Korea, the committee also came up with suggestions of having Bitcoin within the South Korean stock exchange (KRX), which is in fact, the only exchange in the country. They suggested that having Bitcoin trade in the stock market would work as an easy move to control the digital currency operation within the country as well as provide for a more direct way to integrate this digital asset into the market.
As South Korea pushes to have crypto derivatives, there are othercountries and exchanges who have already taken the necessary steps. For example, the CFTC (U.S. Commodity Futures Trading Commission) has already approved some crypto derivative products, while the CME Group is scheduled to offer options on BTC futures on the 13th of January 2020.
South Korean Recommendations
Other recommendations from the presidential committee touched on controlling and regulating cryptocurrency activities within the country. To ensure order with regard to crypto activities, the committee urged the government to offer business licenses and to provide necessary guidelines with regard to crypto exchanges. The committee cited initiatives by Switzerland and the U.S. government when it comes controlling cryptocurrencies. The presidential committee explained that by putting the necessary measures in place, the South Korean government would not have to depend on other foreign custodians to handle cryptocurrency assets.
In addition, the committee has recommended that the government will have to gradually allow institutional investors to deal in digital currency assets, and to promote over the counter desks for institutional investors’ trading. The other recommendation focused on unifying all the terms in relation to cryptocurrencies and trading these assets.
Other than the above recommendations, the committee had earlier advised the government to establish a legal framework to deal with cryptocurrencies with speed, hence ensuring that they have accounting and tax measures in place. In 2019, the presidential committee stated that the South Korean government’s policywas focused on curbing the crypto market, and that as a result ofthe global competitiveness and the changing attitude towards the crypto and blockchain space; there is a definite need for change.