As the leadership is changed, President Yoon Seok-Yeol, the South Korean government is focusing on developing legislation to provide the growing crypto industry with an updated regulation framework. This legislative regulatory framework is known as the Virtual Currency Business Rights Act. Now, multiple primary securities agencies in the country are waiting for its approval.
Activities Of The Large Firms :
Nearly the top seven financial services firms in South Korea are deciding to roll out crypto exchange platforms by next year. One of these big firms is Samsung Securities. That is the financial support of the Samsung Group and Mirae Asset Securities. Also, it is the largest investment banking firm as per the market cap in South Korea.
As per the reports, Samsung Securities is working on the groundwork to provide a trading platform to South Korean users. The platform will deal with cryptocurrencies, and non-fungible tokens (NFTs), and if possible, it will also work on tokenized securities. The organization has been focusing on exploring blockchain-based security tokens since last year. Though, it remained unable to provide the required workforce to develop the security token trading platform.
Strict Regulatory :
After the failure of South Korea-based Terraform labs, the authorities of the country became very conscious of digital assets. They quickly started to focus on regulatory frameworks and work of investigation on crypto platforms. So, it is clear that the situation around cryptocurrencies was fully skeptical.
Though, for the election of Yoon Seok-Yeol as President, the circumstances seem less confusing.
The Presidential campaign of Seok-Yeol has promised to implement pro-crypto and Bitcoin policies along with financial stability for all social classes.
Additionally, the new government is also developing legislation to provide the improved crypto industry with a fair regulatory framework.
Here Is The ‘Why’ :
This shift could be the reason for South Korean financial firms that are pushing to get a license to launch crypto exchange platforms. According to various reports, these related firms could get their permissions between Q3 and Q4 of 2022. That is anticipating several activities.
Through this activity, Samsung Securities participates in a long list of financial giants and multinational conglomerates leaping into crypto waters.
A month ago, the world’s largest asset manager, BlackRock, launched a private Bitcoin trust. The trust offers direct disclosure to spot BTC’s price activity. As per the company, the tool is a reply to growing interest from large clients who want to access cryptocurrencies.
Recently, Blockdata, the market intelligence firm also exposed that Google’s parent company Alphabet Inc provided $1.5 billion to four blockchain companies. It happened between September 2021 and June 2022. These companies include Dapper Labs, Fire Blocks, Voltage, and the Digital Currency Group. Also, the companies like Morgan Stanley, BNY Mellon, Goldman Sachs, and PayPal invested in blockchain startups as well.
Alongside, on August 16, Brazil’s largest brokerage firm by market value, XP Inc, also came with its crypto trading platform. Presently, the platform provides services to users to trade Bitcoin and Ether. It has plans to add ten more digital currencies by the end of 2022. Notably, XP Inc acquired 3.6 million users and anticipates hitting the milestone of 200,000 active crypto users by the end of the year.
Even during the current crypto winter after the crash, the rising institutional adoption of crypto and blockchain technology aims tremendous promise for the virtual digital asset industry. As fast as large companies participate in these rising platforms, retail investors are expected to feel more comfortable investing their capital in this potential asset class. It is expected that over time, this might lead to mainstream adoption and acceptance of crypto products, tools, and services.