Samsung Securities along with six other brokers have filed applications to launch cryptocurrency exchanges in South Korea in 2023.
According to a report by local news agency NewsPim, seven large domestic companies in South Korea have filed applications to establish exchanges for Bitcoin and other cryptocurrencies next year. The report names Samsung Securities, the financial arm of the Samsung Group, and Mirae Asset Securities as two of the firms seeking preliminary approval to operate exchanges within the first half of 2023. Mirae is the largest investment bank in South Korea by market cap, with $648 billion in assets managed. Mirae is looking to onboard technical staff for research and development of Bitcoin and blockchain-based platforms.
Samsung is doing similar studies on how best to enter the Bitcoin and cryptocurrency ecosystem. It attempted to spearhead the development of a crypto trading platform last year but unfortunately failed to acquire the necessary staff to do so. The report says that Samsung Securities is looking into the best way to provide South Koreas customers with cryptocurrencies, NFTs, and possibly tokenized securities.
The news report claims that regulations in the country could be changing following the election of Yun Suk-Yeol as President. Suk-Yeol ran on a campaign that promised more economic stability for all social classes, a shift in the diplomatic relationship with China, and the implementation of pro-crypto policies.
Under its new leadership, the South Korean government is working on a legislation project to provide the industry with clear regulatory frameworks. The regulation is called the “Virtual Currency Business Rights Act” and major securities firms in South Korea are preparing for its approval. The Act is supposed to clarify which digital assets are securities and which are non-security tokens. The classification will also distinguish between digital asset custody services, wallet services, and others.
Although South Korea is seemingly relaxing restrictions on digital assets, the authorities have targeted several crypto exchanges over wrongdoing. Last week, the government acted against sixteen unregistered exchanges operating in the country.
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