The South Korean financial watchdog has unveiled a plan to lighten the regulatory burden on the fintech industry so that companies would adopt innovative technologies, including blockchain.
The Financial Services Commission (FSC) of South Korea has presented a plan to ease regulations so that fintech startups would benefit from the implementation of new technologies such as blockchain, local media reported. The FSC said on Tuesday the changes would encourage fintech companies to adopt advanced technologies for various use cases.
The regulator provided several examples of how companies could benefit from the rule relaxation, stating that clients would be able to buy investment products through video chats, while small businesses would be able to raise capital via crowdfunding.
The FSC anticipates that the fintech space will drive innovative developments and support investors’ income by cutting fees. The regulator also hopes that the industry will create more jobs, especially for the young generation.
On Monday, the FSC said it was giving small and medium-sized businesses, including fintech firms, greater access to clients’ financial data. This should encourage smaller companies to develop innovative investment products.
FSC chairman Choi Jong-ku said:
“The players in the financial service market are becoming more diverse, with new companies entering, and the competition in the financial market is becoming fiercer. As a result, existing financial companies are also making attempts with fintech to raise their services.”
Choi expressed confidence that advanced technologies would help South Korea achieve innovative growth. The administration of President Moon Jae-in included fintech in the list of top eight innovative growth industries.
The FSC chairman also said that fintech innovations would boost job opportunities.
“Fintech is an area that requires new technologies, and it will solve the youth job problem by increasing job positions for young people,” Choi said.
Along with blockchain, the government wants to encourage other innovative technologies, such as the accessible payment system referred to as app-to-app.
South Korea is quite open to blockchain development despite trying to tighten regulation in the cryptocurrency market. Last week, we reported that the Seoul Southern District Prosecutors’ Office had raided three cryptocurrency exchanges on suspicion they were moving client assets into their personal accounts.
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