South Korean Presidential Commission Suggests Measures to Institutionalize Crypto in Financial Sector

PCFIR suggests measures to institutionalize crypto
  • South Korea’s Presidential Committee on the Fourth Industrial Revolution (PCFIR) has put forward measures to establish crypto in the mainstream fintech sector
  • The commission suggested Bitcoin Futures as a long-term strategy to realize this

The Presidential Committee on the Fourth Industrial Revolution (PCFIR), responsible for discussing matters pertaining to the development and acquisition of advancing technologies, advocated crypto-related products such as derivatives as a strategy to institutionalize cryptocurrencies into the financial sector of South Korea. The PCFIR also urged the government to follow in US regulators’ footsteps and launch Bitcoin Futures, and to develop a national custody solution to do away with dependence on foreign custodians to handle crypto asset markets.

As reported by Business Korea, other suggestions of the Commission included listing of Bitcoin on the official South Korean Stock exchange (KRX), the securities exchange operator in the country; fusion of different terms such as cryptocurrencies and virtual currencies into a broader term, “crypto assets”.

The committee stated:

“As of May 2019, daily crypto-asset trade hit more than 80 trillion won (about US$69 billion) in the world, so it is no longer possible to stop crypto-asset trade. […] The Korean government has to gradually allow institutional investors to deal in crypto assets and promote over the counter (OTC) desks dedicated to institutional investors’ trade.”

The PCFIR also referred to the US and Swiss financial authorities and advised the government to emulate their licensing scheme or guidelines for crypto-asset exchanges.

 

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