One of South Korea’s presidential commissions, The 4th Industrial Revolution Commission, has published a document urging the South Korean government to grant financial institutions the right to launch crypto investment products, including Bitcoin derivatives.
The commission hinted that the move would serve as a medium and long term strategy for the eventual institutionalization of cryptocurrencies and the subsequent integration of crypto-related products into the country’s financial system, Business Korea reports today.
Citing similar moves made by the U.S. financial watchdog, which granted regulatory approval to firms to launch crypto derivative products tied to the value of Bitcoin (BTC), the commission advised the Korean government to adopt the same approach.
As per the report, the commission further urged the country’s financial sector to introduce and develop a crypto custodian solution for South Korean-based crypto firms in order to reduce the rate at which these firms rely on foreign crypto custodial providers.
“Participants in the traditional capital market such as securities firms and banks should develop and introduce domestic custody solutions to handle crypto assets so that the Korean crypto-asset custody market will not depend on foreign countries,” the commission stated in the report.
The commission also recommended that the Korean government should enable the listing of Bitcoin on the Korea Exchange (KRX) for institutional traders.
Notably, the commission acknowledged that cryptocurrencies since its inception had recorded several achievements such as providing faster cross-border payment service, widespread adoption, among others while adding that:
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.
Several reports on Coinfomania suggest that South Korea is not against the growth of cryptocurrencies, instead it is looking toward tapping from its endless opportunities to boost its financial sector.
In November, Coinfomania reported that South Korea is preparing to legalize the concept of digital currencies in the country as the National Assembly gives its approval for the process.