South Korea Will Permit Bitcoin Firms for International Money Transfers

Source- Google

The South Korean government will grant licenses to the FinTech companies, including Bitcoin-mediated foreign currency transfer services, to facilitate international cash transfers for small funds.

Come on August 15, about 40 FinTech companies are expected to launch international money transfer services upon receipt of permits from the Financial Supervisory Authority, South Korea's financial regulator. According to the Korea Herald, the allowable amount for a one-time transfer via a FinTech company will be $ 3,000 or less. The annual limit for a single account is limited to $ 20,000 for transfers by FinTech companies.

As CCN reported in early May, the South Korean government withdrew the regulatory burden on foreign money transfer startups. There are at least 20 FinTech companies in Korea that use bitcoin for foreign exchange services to Korean citizens.

A revision of the foreign exchange business law, which entered into force this month, will see that the Korean FinTech companies' equity of ₩ 1 billion (about 882,000 US dollars) is at least 2 billion billion (1.76 Million USD) foreign currency transfers in Korea. It was noteworthy that none of the 20 Bitcoin referral companies could meet the previous criteria.

Traditional bank transfers, through SWIFT, usually 3-4 business days between payment and settlement and could result up to 6% of the transfer in fees. While PayPal and other "modern" wire transfer services have significantly faster services with slightly cheaper fees, a bitcoin-based transfer agent will guarantee the same day foreign transfers with charges at 1% of the transaction or less.

The numerous benefits of the bitcoin-based transfer have even led to the financial giant Shinhan Bank launching a bitcoin-backed transfer service for the Korea-China corridor at the end of 1998. A typical transfer will see that Shinhan Bank transmits the transfer value of the sender to a digital exchange Hong Kong, where it is to be converted into bitcoins. These bit coins and then sent to a Chinese exchange, where they are to be converted back into the Chinese Fiat before the receiver receives the funds.

Source-CCN

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