The crypto regulations have been tightened in South Korea especially after the Terra crash and allegations against crypto exchanges about not warning the investors of risky crypto assets. A number of big securities companies in South Korea are applying for preliminary licenses to begin virtual asset exchange by the first half of 2023. The security companies include Shinhan Financial Investment, Mirae Asset Securities, KB Securities, and NH Investment & Securities.
The South Korean crypto market is in a turmoil following the Terra crisis and allegation against crypto exchanges. However, with the crypto friendly President Yoon Suk-yeol in reign cryptocurrencies have been flourishing.
Burgeoning Virtual Asset Exchanges By Large Securities Firms
As per a report by Newspim major South Korean securities firms Shinhan Financial Investment, NH Investment & Securities, KB Securities, and Mirae Asset Securities are going to set up virtual asset exchanges in the first six months in 2023. As the government is now harping about security, these security companies seek to launch virtual asset exchanges.
The security firms, NH, KB, and Shinhan Investment have already applied for initial licenses with the financial regulators. Hectic parleys are on with the authorities for setting up the virtual asset exchange.
Mirae Asset Securities is hiring experts in virtual assets plus digital assets including Bitcoin, Ethereum, and non-fungible tokens (NFTs) in its run up to setting up a virtual asset business at the group level. It will constitute as a subsidiary under Mirae Asset Consulting.
Another big entrant in the blockchain-based security token market is Samsung Securities. The company had planned development of security token trading and development of blockchain smart contracts last year and even was on a hiring spree but lack of expertise lead to the failure of the plan.
Crypto Sector Boom in South Korea
With the easing of regulatory burden and postponement of crypto taxes and a crypto friendly President Yoon Suk-Yeol in power has led to a crypto boom in South Korea. The image has however been tarnished by the Terra crash. However, the government is strengthening regulatory framework and laws