South Korea to Establish Digital Currency Policy-Making Department 🚨 This article is 6 years old...
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South Korea to Establish Digital Currency Policy-Making Department
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Updated: Sep. 9, 2018 at 7:21 pm UTC
Photo by Steve Roe on Unsplash
South Korea’s financial authority confirmed on July 19, 2018, the implementation of a policymaking department focused exclusively on blockchain technology and related domains.
Rising Technology “Leads Financial Innovation”
As reported on The Korea Times, the country’s Financial Services Commission decided after careful consideration of the burgeoning blockchain industry and a crucial need for regulation to ensure optimal growth.
The decision is part of an ambitious state-backed plan to restructure existing frameworks and lead financial innovation in the “Fourth Industrial Revolution,” a term prevalent in recent times after the relevance of several technologies, such as Artificial Intelligence, Machine Learning, and blockchain.
The FSC reportedly met with Korea’s Ministry of Interior and Safety in July 2018 to confirm the development. As part of the efforts, the purported Financial Innovation Bureau will be established shortly.
At the time of writing, reports suggest the Financial Innovation Bureau will be a temporary organization limited to a two-year lifespan. Nonetheless, the FSC aims to make full use of its short existence to nurture the country’s rising digital assets sectors, providing support and legislation for local cryptocurrency companies and blockchain startups.
An FSC official stated:
“The new Financial Innovation Bureau will also be tasked with policy initiatives for financial innovation, such as innovating financial services using fintech or big data, and responses to new developments and challenges such as cryptocurrencies.”
Korean Authorities Optimistic
It is unknown if a successful tenure will lead to a permanent government fixture for the Financial Innovation bureau. However, the agency reportedly sides with Korea’s Financial Stability Board’s (FSB) stance on cryptocurrencies that claimed the digital tokens “do not pose the material risk to global financial stability.”
The FSB is an internationally-acclaimed, supreme authority which has a substantial voice in the global G20 group and other central bank consortiums.
The Bank of Korea (BoK) expressed a similar sentiment towards the global crypto asset market in July 2018. Citing December 2017’s monumental Bullrun, the central bank stated the relatively small size of the crypto-industry represented a “limited risk” to traditional financial markets and institutions.
The development follows statements from the FSB on July 13, 2018, as reported by CryptoSlate. Vice Minister Ko Hyoung-Kwon presented several solutions to enhance innovation within the country, including a restructuring of corporate taxes that would enable greater support for job creation in emerging sectors.
Hyoung-Kwon vowed to reduce taxes for cryptocurrency businesses and provide legislation to build employment in the sector.
Meanwhile, the favorable announcements preceded Bitcoin’s gradual rise on July 16, 2018, when the pioneer cryptocurrency gained $1,000 in a few hours as per pricing data observed on TradingView.
