South Korea’s stance towards digital currencies has been inconsistent, therefore the country’s Financial Services Commission (FSC), is reportedly creating a department that will work on policymaking initiatives for its financial market.
Customer Financial Protection is the Priority
According to a report issued by the FSC, the Financial Innovation Bureau will focus on strengthening customer financial protection protocols, while also creating policies to better suit the latest innovations coming from within the nation’s fintech and digital currency industry.
In its report, the FSC mentioned that the bureau “is responsible for policies on financial innovation, promotion of innovative financial products and services, support for financial innovation industries and companies such as Fintech, management, and supervision of related markets such as virtual currencies.”
Recently, the South Korean Financial Stability Board mentioned that the cryptocurrency industry does not pose a threat to the global financial market, yet ‘vigilant monitoring’ is essential. The Bank of Korea has iterated a similar opinion, following a report that $1.79 billion worth of digital assets are stored in domestic bank accounts.
After the FSC report was released, an official mentioned that:
“The FSC plans a major organizational reshuffle to better protect financial consumers and proactively respond to financial innovation in the Fourth Industrial Revolution era.”
Final Take
Based on these aspects, it is highly likely that South Korea will soon have a legislative framework that focuses on consumer protection, as well as encourages innovation within the country’s digital asset industry.
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