Financial authorities decided to institutionalize digital currencies such as Bitcoin. In addition, they are planning to ramp up the size of average annual policy finance to one trillion won from 500 billion won for the development of fintech.
“We will take the lead in the convergence of new emerging technologies such as digital currencies and blockchains and financial service,” said Yim Jong-yong, chairman of the Financial Services Commission (FSC) in the 12th Fintech Demonstration Day held in Gran Seoul in Jongro-gu of Seoul on October 24. “We will push ahead with the institutionalization on a full scale in line with international trends such as the US and Japan.” This means that the government will make detailed plans to commercialize digital currencies such as Bitcoin in the financial market.
“Blockchain technology is emerging as the core infrastructure of future finance,” Yim said. “We will go ahead with joint research and pilot projects ahead of international trends by launching a joint blockchain consortium of the financial industry within this year. We will also reinforce the functions of the Fintech Support Center to practically back the fintech industry and expand the size of support for policy finance to three trillion won for the next three years and use the funds as priming water for fintech ecosystems.”
“We will create conditions to test fintech services without a burden of regulating them by introducing a financial regulation test bed system and review various regulations and practices against non-facial channels such as verification and user identification,” Yim added.
The Korean FSC signed an MOU on cooperation in the fintech sector with the Monetary Authority of Singapore (MAS) in Fintech Demonstration Day. Both sides will exchange information about fintech-related regulations and policies, market trends and technology and hold meetings about fintech and carry out exchanges of human resources via the MOU.
They also agreed on joint projects on core technologies such as digital and mobile payment, blockchains and big data.
The Fintech Support Center opened its home page to the general public. The center is planning to make good use of the home page as a general fintech portal to which people will be able to have one-stop access to get their hands on Korean and foreign information about the fintech industry. It is expected that fintech firms will be able to test and publicize new technologies and financial institutions and investors will be able to obtain information about fintech companies and services via the general fintech portal.