South Korea’s Fourth Industrial Revolution (PCFIR) Presidential Committee believes that financial institutions should be able to offer crypto derivatives.
This proposal could bring cryptocurrencies into the mainstream and support their adoption.
The report published by Business Korea claims that cryptocurrency transactions have increased worldwide and “it is no longer possible to stop transactions with crypto-assets”.
The committee said the Korean government could follow the model of US regulatory authorities. They have approved the launch of derivatives and other products such as bitcoin futures contracts. Also, institutions should be allowed to provide other services associated with cryptocurrencies, such as trading.
“The Korean government should gradually allow institutional investors to deal with digital assets and promote OTC sales offices dedicated to institutional investor trading,”
said the committee in the report.
To support such a move, the nation’s fintech sector should develop cryptocurrency custody solutions. It is important to avoid reliance on foreign custodians, PCFIR said.
The committee’s proposal is to implement a licensing system or an activity guide dedicated to exchanges. Currently, the crypto industry is controlled indirectly through the guidance provided to banks. Also, the South Korean Financial Supervisory Commission seeks to gain the authority to directly supervise crypto exchange companies.
Other suggestions from PCFIR included, in particular, that bitcoin could be listed directly on the Korea Exchange national stock exchange. Also, the terms “cryptocurrencies” and “virtual currency” can be combined under the umbrella term of crypto assets.
PCFIR was established in 2017 to provide advice on policies regarding new technologies. Helps to lay the groundwork for new industries and related services.
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