A presidential committee formed to advise the government in regards to the fourth industrial revolution is recommending that the South Korean government should let financial institutions to offer crypto-based products, CoinDesk reports.
The Fourth Industrial Revolution Committee (PCFIR) based in the office of the president has indicated that crypto products like Bitcoin derivatives should be allowed as a measure to institutionalize crypto trading in the country. According to the committee, crypto trading is on the rise and it will be difficult for the government to inhibit crypto-assets trading in the near future.
The committee suggests that the Korean government follow the path formulated by the US regulators and allow products like Bitcoin Futures. They further stated:
“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 in crypto assets and promote over the counter (OTC) desks dedicated to institutional investors’ trade.”
To deal with the uncertainties facing cryptocurrency exchanges, the committee suggests that the government introduce a licensing procedure or some form of guidance. The report released by the committee says that at the moment, the exchange industry is loosely controlled, Cointelegraph reports. The government should learn from the Swiss financial authorities in licensing and control of crypto exchanges in the country, the committee suggests.
Other notable suggestions from the committee comprise of allowing Bitcoin to directly trade in Korea’s national securities exchange (KRX) and unification of cryptocurrency as well as virtual currency terms under the term crypto assets.
The committee was set up in 2017 through a presidential decree to advise on policy initiatives and come up with recommendations on how to develop technological solutions in South Korea. They also coordinate public campaigns to encourage adoption and use of new tech in the country.