According to local reports, 7 large brokerage firms have filed applications to roll out cryptocurrency exchanges in South Korea come 2023. These companies include tech giant subsidiary Samsung Securities and Mirae Asset Securities.
Domestic Firms Pursue Approval to Establish Crypto Exchanges
The release stated that the companies have their sights set on the first half of next year to start operations. Hence, they have begun to work towards obtaining approval from the relevant authorities before 2022 comes to an end. According to an official from a domestic securities company, the important negotiations for the platform are drawing to a close.
The report only cited 2 of the companies in question and also revealed further details on their respective plans. Mirae Asset Securities intends to set up an offshoot beneath affiliate company Mirae Asset Consulting. Rather than participate directly, the securities firm will get involved via a task force under the Mirae Asset Group.
The securities firm will also employ research and development experts. It intends to provide services around assets such as BTC and ETH as well as non-fungible tokens.
Samsung Securities meanwhile is focused primarily on offerings surrounding blockchain-based security tokens. Samsung Securities has attempted to enter the security token trading niche in the past. However, they were unable to build a team with the skill to establish and run such a platform.
Increase in Institutional Interest in Digital Assets
South Korea’s digital asset industry has begun to experience a rise in demand in recent times. Until now, financial watchdogs in the region have been strict in their dealings with crypto businesses. However, President Yoon Suk-Yeol’s campaign promises included plans to deregulate the crypto market. The new president has reiterated several times his desire to turn South Korea into a crypto hub.
Indeed, the nation’s Financial Services Commission (FSC) is already acting in line with this. The agency is set to push for the legalization of the “Virtual Currency Business Rights Act.” Notably, the securities sector, as well as the Financial Investment Association, have already been clamoring for this.
The FSC also intends to review crypto-relevant policies and forge ahead with the Digital Assets Framework Act. This move will see virtual assets fall beneath one regulatory structure that classifies them as either security or non-security type tokens. Finally, the South Korean commission will review grouping domestic digital assets as securities.