Staying ahead of the financial innovation for optimal growth of the nation

Image source: pixabay - 8minwoo

South Korea is taking another step forward to proactively respond to the "Fourth Industrial Revolution Era", where blockchain is a crucial development as an immutable ledger suitable for the future of the financial sector. Korea's Financial Services Commission (FSC) has created the Financial Innovation Bureau spearhead the crypto sector:

The new Financial Innovation Bureau will also be tasked with policy initiatives for financial innovation, such as innovating financial services using fintech or big data, and responses to new developments and challenges such as cryptocurrencies.
Source: Forbe - Billy Bambrough

Image source: pixabay - sonam-

The Financial Stability Board (FSB) recently released a report with findings stating that "Bitcoin and cryptocurrencies do not currently pose a material risk to the global financial system." Source: Forbes - Billy Bambrough. South Korea’s Supreme Court have also ruled that Bitcoin is a legally recognizable asset last month.

Similarly, the Bank of Korea is supportive of the move as they cited "limited risk" of the smaller scale crypto industry as opposed to traditional financial markets and institutions. Source: cryptoslate - Shaurya Malwa.

Vice Minister Ko Hyoung-Kwon presented several solutions to enhance innovation within the country, which includes tax reductions for blockchain-related projects:

“We will revise the corporate and income tax incentives to promote job creation and expand the tax reduction for new growth engine investment and ease requirements for new technology support, including the blockchain technology investment support.”
Source: cryptoslate - Johnathan Kim

Image source: pixabay - cmmellow

Korea's strict policies on anonymous trading has paid off, eliminating the possibility of illegal activities on local exchanges. The ban included preventing foreigners, minors and government officials from trading. Tax imposed on all crypto trading platforms also intensified the cryptocurrency sell-off early this year. Source: cointelegraph - Stephen O'Neal.

From bans to leading the fourth industrial revolution, we are expected to see bigger plans being rolled out this year. The overall positive sentiment of cryptocurrencies in South Korea might give the country a boost to its economy, when cryptocurrency and blockchain technologies mature. Every country needs a competitive edge. Whether they would succeed, I can only hope for the best to all crypto investors.

-tysler