The South Korean Presidential Committee on the Fourth Industrial Revolution (PCFIR) recommends the government to allow the launch of Bitcoin derivatives on Korean firms.
A local English-language news outlet named Business Korea has reported on 6th Jan that South Korean Commission wants Bitcoin derivatives to be launched on Korean firms for the institutionalization of cryptocurrency.
The Commission published a document in which it advised the government to use some policies that can help it institutionalize cryptocurrencies. Korean Commission also said that the world’s leading asset should directly be launched on the Korean exchange.
South Korean Commission also advised the government that they could also introduce the business licenses or guidelines for crypto exchanges. After that, they would be able to integrate the crypto-based products into the financial systems in the mid and long-term. As the commission commented:
As of May 2019, daily crypto-asset trade hit more than 80 trillion won (over $68 billion) in the world, so it is no longer possible to stop crypto-asset trade. […] The Korean government has to gradually allow institutional investors to deal with crypto-assets and promote over the counter (OTC) desks dedicated to institutional investors’ trade.”
Apart from this, a Korean custodian solution in the financial system would prove beneficial for the country as it would not have to rely solely on the foreign countries for the crypto-asset custody.
As the Commission says:
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
In the country, the local crypto traders are not enforced to pay tax on the profit that they earn from the crypto trading as the South Korean Ministry of Finance and Strategy announced in the previous week.