Samsung Among Other South Korean Companies to Launch Crypto Exchanges in 2023

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View of downtown cityscape and Seoul tower in Seoul, South Korea.

It seems that South Korea is quickly turning its focus on cryptocurrencies, with many companies looking to set up digital exchanges as soon as next year. Among them are some securities and trading firms, but also Samsung, the tech giant whose influence reaches far outside Asia. These plans have put domestic financial regulators on alert. So far, these agencies have been very strict on crypto-entities, shutting down as many as 60 trading venues last year. The move comes at a time when major banks such as Revolut have won an approval to offer crypto services in Europe.

However, Samsung and other major companies are working closely with security watchdogs to develop their own exchanges. There’s no official launch date so far, but information from insiders say it could be as soon as next year.

Thinking Big

The news broke out in a tweet by Bitcoin Magazine which announced a new initiative spearheaded by Samsung to launch Bitcoin and crypto exchanges in South Korea in 2023. The recent regulatory aggression has seen many crypto schemes fail around the world. That’s most likely the reason why big companies are taking up exchanges, setting them up in close collaboration with the securities watchdogs in the country.

As many as seven companies have announced plans and submitted applications for primary authorization of crypto trading exchanges. Samsung Securities, one of the tech giant’s divisions, is among them. Other companies include Mirae Consulting, a company that’s employing people for the development of non-fungible tokens (NFTs).

Why this change all of a sudden? New South Korean president Yoon Suk-Yeol just begun his tenue this May. He’s said to be pro-crypto and has vowed to provide support to the crypto space. However, with the fall of Terra, the market has become more volatile than ever. It has resulted in watchdogs tightening their grip on the market and tougher regulations.

The South Korean finance ministry recently announce plans to airdrop crypto tokens and staking rewards. Hard-forked assets would also be established as gift tax or under the scope of influence. All crypto rewards and earnings would be taxed under the Inheritance and Gift Act, so it’s clear that the country is looking to regulate the crypto space.

A Drastic Change from Last Year

Just last year, the FIU, South Korea’s top financial regulator, clamped down on numerous local digital asset platforms. It cited non-compliance with AML rules. More than 60 firms didn’t register with the watchdog or comply with its rules, resulting in the shutdown of their operations.

Luckily for South Korean crypto fans, the four major exchanges obtained all the necessary documents to continue operations. Those include Coinone, Korbit, Bithumb, and Upbit. Other exchanges such as Flybit, Cashierest, and ProBit obtained securities documents, but they didn’t won any settlements.

It remains to be seen how Samsung and the other companies organize their own exchanges. Those are major players on the South Korean and global market, and tapping into this market could result in a major new stream of income. But only if they do it right. The FUI is watching over the market, and we’re sure it’ll jump into action the moment it spots irregularities.

August 24, 2022: • No Comments

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