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Several large securities companies in South Korea plan to file preliminary licenses to establish virtual asset exchange by the first half of 2023. The securities giants include Mirae Asset Securities, NH Investment & Securities, KB Securities, and Shinhan Financial Investment.
The crypto regulatory landscape in South Korea has improved after the Terra crisis and allegations against crypto exchanges. The South Korean crypto market is flourishing under crypto-friendly President Yoon Suk-yeol.
Large Securities Firms Aims to Establish Virtual Asset Exchanges
South Korean securities firms Mirae Asset Securities, NH Investment & Securities, KB Securities, and Shinhan Financial Investment to establish virtual asset exchanges in the first half of next year, reported Newspim on August 22.
The securities giants plan to complete preliminary authorization and corporate establishment processes in the second half of 2022. Thereafter, the companies aim to launch virtual asset exchanges as the government pushes for regulatory clarity.
In fact, NH, KB, and Shinhan Investment have started to apply for preliminary licenses with the financial regulators. Moreover, an official from a securities firm said discussions on the establishment of a virtual asset exchange are being held currently.
Mirae Asset Securities plans to set up a virtual asset business at the group level. The virtual asset business will be a subsidiary under Mirae Asset Consulting. The company is hiring experts in virtual assets including digital assets including Bitcoin, Ethereum, and non-fungible tokens (NFTs).
Samsung Securities is also conducting studies on entering the blockchain-based security token market. Last year, the company tried hiring experts for the development of security token trading and development of blockchain smart contracts. However, the lack of experts led to a shortfall in the plan.
Crypto Boom in South Korea
The South Korean crypto landscape has improved under the crypto-friendly President Yoon Suk-yeol. The Yun Seok-yeol government eases the regulatory burden, postpones crypto taxes, and promotes crypto companies.
However, the Terra-LUNA crisis led the government to strengthen the regulatory framework and laws surrounding the crypto market. The Financial Services Commission (FSC) introducing legislation related to crypto business rights, as requested by the Financial Investment Association and the securities industry.
The FSC is also pushing for the Digital Assets Framework Act that will classify crypto tokens into securities and non-securities. The South Korean securities industry looks for ways to offer security tokens, NFTs, virtual currency, virtual asset custody, and wallet services.