Top South Korean Brokerages Apply to Create Virtual Assets Exchange in 2023
- Regulators in South Korea are keen to bring the crypto market under control in a bid to ensure safety for local users.
According to a local South Korean paper, seven major traditional brokerages have begun preparing the framework for their own cryptocurrency exchanges in the first half of 2023. According to the source, the companies have requested preliminary clearance and the formation of corporations to manage virtual asset exchanges.
Mirae Asset Securities and Samsung Securities are two of the notable names on the list of seven companies. While Samsung explores ways to enter the blockchain-based security tokens market, Mirae has launched a company under its affiliate Mirae Consulting. According to the publication, Samsung struggled to hire qualified staff in its ambition to create a platform for trading cryptocurrencies at the end of last year.
Other identified firms in the report were KB Securities, Shinhan Financial Investment, and NH Investment & Securities. KB Bank announced a few months ago that it was working toward launching the first cryptocurrency investment products for retail investors in South Korea.
Crypto Regulation Steps up in South Korea
The newly-elected government of Yoon Seok-yeol, who assumed office in March, may have made it easier for the development of a purported virtual assets exchange by initiating regulatory liberalization. Under the previous administration led by President Moon Jae-In, South Korean regulators sought to introduce policies to regulate and control the expanding crypto market. Crypto exchanges were mandated to go through a tiring registration process.
Although the new administration promised to be crypto-friendly- the collapse of Terra left regulators further alarmed about the volatile crypto market. As a result, regulators have stepped up efforts to create trust in the South Korean market by ensuring that only registered crypto service providers operate in the country.
The country’s Financial Services Commission have given crypto service companies until September 24 to register their operations or face punitive measures. Notably, South Korea’s Financial Intelligence Unit (FIU) recently announced plans to ban about 16 foreign exchanges that were operating without a license and appropriate registrations. Some of the exchanges include Phemex, KuCoin, and Poloniex.
The FIU also accused these foreign exchanges of bypassing authorities and regulators to deliberately offer crypto services targeted at the Korean market, leaving South Koreans exposed.
South Korea is not the only country seeking more control of the crypto market to protect local users. Regulators across Europe, America, and other parts of the world have edged closer to releasing policies that bring crypto service providers under full regulation.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
