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The Financial Authorities of South Korea Will Make Regulations More Flexible in Order to Impulse the Adoption of the Blockchain Technology

The Financial Services Commission (FSC) of South Korea presented a plan that could change the current regulations and open the door for new technologies.

The FSC is a financial regulatory body of South Korea and the new plan to impulse the implementation of the blockchain technology and the FinTech sector in general should make the current regulations more flexible. According to Korea JoongAng Daily, the goal of the plan is to establish new parameters that would support the adoption of tools based on the innovative blockchain technology.

With the newly announced plan, the Financial Services Commission (FSC) would like to encourage the banking corporations and other companies to make use of the benefits provided by the blockchain technology. The financial regulator pointed out the security of financial information of the clients and the simplicity of the process of verifying transactions in a blockchain network.

Moreover, the FinTech alternatives are presented as an option to increase the income of the financial companies by reducing the commissions and other service costs. During the presentation of the new plan, an example was used to demonstrate the possibility for the clients to buy investment products through video chat and to show how the crowdfunding campaigns would transform into a legal investment method for small companies. This means the ICOs could be allowed again after they were banned in September last year.

The financial authorities of South Korea do not only intend to boost the FinTech innovations with the new project, but also to expand the job market for the youth. Choi Jong-Ku, the Chairman of the Financial Services Commission (FSC) said: “Fintech is an area that requires new technologies, and it will solve the youth job problem by increasing job positions for young people. The players in the financial service market are becoming more diverse, with new companies entering, and the competition in the financial market is becoming fiercer. As a result, existing financial companies are also making attempts with fintech to raise their services.”

The cryptocurrencies and the blockchain technology are an important part of the everyday life of many South Koreans. The South Korean cryptocommunity managed to collect 200,000 signatures to support the petition against the ban of the cryptocurrencies in the country.

The new plan of the FSC to create more flexible cryptocurrency regulations and impulse the innovations presents a step forward in its proposal for autoregulation. However, this does not mean the security and other important aspects such as auditing of the cryptocurrency exchanges would be set aside.

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