Key Takeaways:
- Seven companies had formally applied for fundamental permission and the formation of entities to administer an exchange.
- The investment firms intend to complete the preliminary authorization and corporate establishment processes in the second half of 2022.
- Among the securities, titans are Samsung Securities, Mirae Asset Securities, NH Investment & Securities, KB Securities, and Shinhan Financial Investment.
Several prominent South Korean securities firms intend to file preliminary permits to build virtual asset exchanges by the first half of 2023.
Bitcoin Magazine highlighted a new approach by Samsung to create a Bitcoin and cryptocurrency exchange in South Korea by 2023 in a Twitter post on August 22nd.
According to a local source from NewsPim, seven prominent domestic securities businesses in South Korea have filed to build exchanges for bitcoin and other cryptocurrencies.
Following the Terra crisis and claims against cryptocurrency exchanges, South Korea’s crypto regulatory landscape has improved. South Korea’s cryptocurrency economy is thriving under crypto-friendly President Yoon Suk-yeol.
The recent presidential election of Yoon Suk-Yeol is said to have sparked a surge of institutional enthusiasm in South Korea. On the campaign path, South Korea’s president vowed liberalisation of the bitcoin and cryptocurrency industries.
“We must transition to a negative regulation structure to ensure that at least the virtual asset market is not concerned,” Suk-Yeol remarked.
These exchanges were expected to launch in the first six months of 2023, the report only mentioned two of the seven enterprises at the forefront.
The two companies mentioned in the report were Samsung Securities, a division of Samsung Futures Inc, and Mirae Asset Securities. Mirae Consulting is a new division of Mirae that hires technical staff for various crypto and Non-Fungible Token (NFT) initiatives.
Mirae Asset Securities intends to establish a virtual asset business at the corporate level. Samsung Securities is also investigating the possibility of approaching the blockchain-based security token market.
The FSC also advocates for the Digital Assets Framework Act, which categorizes crypto tokens as securities or non-securities. South Korea’s securities business is exploring new ways to provide security tokens, NFTs, virtual currency, virtual asset custody, and wallet services.
The South Korean Ministry of Strategy and Finance has unveiled intentions to establish airdrop crypto tokens, staking rewards, and hard-forked assets under a gift tax. The Inheritance and Gift Tax Act would also apply to this. Several residents were taken aback by the revelation, given the administration had previously prolonged the crypto gains tax to 2025.
