The Central Bank of South Korea (BOK) reported that the outstanding balance of accounts associated with digital currencies, amounted to $1.79 billion as of December 2017. It’s only 8% of the total deposits in the country. This means that cryptocurrency assets have little impact on South Korean financial market.
According to the South Korean Central Bank total volume of deposits administered by brokerage firms in the country, is 26 trillion won, or $23,27 billion Thus, the amount in the accounts related to crypto-currency, is incomparably small. In addition, according to the BOK report, the risks associated with digital assets have little impact on local financial institutions. These circumstances have forced the regulator to come to the conclusion that the cryptocurrency market is not a threat to traditional financial markets.
It should be noted that the data of the Central Bank include the accounts for a period of unprecedented growth of the cryptocurrency market at the end of 2017, when the rate of bitcoin broke $20 000.
We will remind, last week the financial services Commission of South Korea (FSC) has revised the rules in relation to cryptocurrency exchanges and their activities, taking a step towards them. This decision followed the agreement of South Korean authorities of “the Big twenty” (G20) on the deregulation of the cryptocurrency market and establishment of uniform rules for the participating countries. According to the G20 decision, which was adopted at the summit in March, the rules have to be taken in July. In their basis standards of the intergovernmental Group of development of financial measures of struggle against money-laundering (FATF).
Another event showing that South Korean regulators are beginning to treat the cryptocurrency sphere more and more loyal, occurred in may. The special Committee of the National Assembly of South Korea’s fourth industrial revolution proposed to remove the country’s ban on ICO. Instead of a complete ban, the Committee proposes strengthening safeguards for investors.
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