The Presidential Committee on the Fourth Industrial Revolution (PCFIR) in South Korea has suggested the Government to let in Bitcoin derivatives for financial institutions. PCFIR, recommended that the financial institutions should be entitled to launch their products, and the government should allow this to happen. The bitcoin derivatives should potentially pave the way for the institutionalisation of cryptocurrencies.
South Korea’s Presidential Commission has proposed Bitcoin-based financial derivatives to counter the digital Yuan. The commission recommends setting up a Korean custodial service for cryptocurrencies. The commission also recommended:
“The financial sector develops and introduces a South Korean custody solution to avoid depending solely on foreign depositories in the process of processing cryptographic assets. And Bitcoin should be listed directly on the Korean Stock Exchange (KRX).”
This proposal would pose a considerable challenge to digital Yuan. The commission recommends putting up a South Korean custodial service for cryptocurrencies. It also advocates :
“The South Korean government must gradually allow institutional investors to process crypto assets and promote over-the-counter (OTC) offices dedicated to the trade of institutional investors.”
The committee also advises that the U.S. and Swiss financial authorities are a prime example to follow. The government should ponder about releasing guidelines for the crypto exchange and cryptocurrency-related products into the economic mainstream. These recommendations are in response to the growing demands of cryptocurrency on a global scale.
Unifying the Currencies in South Korea
The committee also recommended the unification of different terms currently in South Korea such as cryptocurrencies and virtual currencies under the clause “crypto-assets”. However, the South Korean government is examining international trends to include digital currency in current tax laws properly.
The committee also suggests launching a new inclusive term called the “crypto-assets” in South Korea. Under which they advocate joining different terms such as cryptocurrency and virtual currencies.however, the South Korean government is currently evaluating the international trends to find out how to include digital currency in the tax laws of the country. The Government recently confirmed that bitcoins profits are not free from taxes.