Regulation on crypto exchanges in South Korea has been strict. So strict that more than 60 trading platforms ended their service in 2021.
Still, a handful of big players are looking to enter the space in 2023 with the goal of receiving licensure by the end of 2022.
What happened: The two most notable companies aiming to launch their platforms are Mirae Asset Securities and Samsung Securities. The move comes as newly elected president Yoon Seok-yeol eases regulation. According to South Korea’s NewsPim, the Financial Services Commission (FSC) plans to promote the enactment of the “Virtual Currency (Cryptocurrency) Business Rights Act.” This has been something the Financial Investment Association and the securities industry have been requesting.
“The FSC plans to revise the relevant laws and push forward with the Digital Assets Framework Act so that they can be managed in one regulated framework divided into security-type tokens and non-security-type tokens,” the publication stated. “At the same time, it said that it would examine whether domestic virtual assets are securities.”
Why It’s Important: Regulation is one of the largest issues facing crypto. While many investors want proper regulation so it can bring in institutional investors, over-regulation largely goes against the ethos of crypto in the first place. South Korean policy could set a precedent for the rest of the world.
Also, the fight for crypto exchange dominance is far from over. Despite an early lead from platforms like Coinbase, FTX and Binance, if a company like Samsung has a direct link with new users and is able to penetrate the market, the exchange landscape could begin to look very different.
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