South Korea is looking to reform their complex finance laws and a part of that will be the Bitcoin Industry. South Korea’s Financial Services Commission (FSC) announced that they have taken out complex regulations and is looking to reform the current system in order to encourage new and innovative FinTech technologies like Bitcoin. The FSC also plans to raise policy loan support from $439 Million to $879 Million. The main reason for the raise is to build South Korea’s Bitcoin blockchain based financial infrastructure. The research as well as testing is already underway.
The reason South Korea is so interested in Bitcoin that that Bitcoin has proven over the years to be very secure and inexpensive in regards to payment transactions. This is because there is no fee to receive bitcoins and even “wallets” only charge a very small fee unrelated to the amount transferred. Once a transaction is completed, Bitcoin payments can not be changed which is why it is so secure. The chances for fraud is very slim since there is no middleman. This is perfect for Korea since a major problem for Koreans living in Korea is sending money abroad. With Bitcoin sending money abroad is very simple and easy as there are no banks that make you wait and charge extra fees when making international transfers.
The key to Bitcoin success is for more businesses to accept them. This will increase the customer base and give businesses in Korea new visibility. Accepting a new payment method has shown to increase revenue for online businesses.
In South Korea, there are no specific laws regarding Bitcoin or digital currency startups. Startups like Coinplug and Korbit have been able to grow steadily as they test their services without interference from the government. This has given Bitcoin startups the room to grow without having to deal with the hassle of Korean Tax laws. Now Fin Tech startups in general can find new and innovative forms of technology without needing special licenses for testing. Not having these regulatory burdens will be vital in how fast Fin Tech and Bitcoin grows in Korea. Korea could be well on their way in being the leader of blockchain payment systems.