Samsung is planning to launch its own crypto exchange in South Korea as early as next year, according to the South Korean news agency.
The tech giant will launch the crypto exchange via its subsidiary, Samsung securities, which describes itself as “Korea’s leading financial investment company offering a wide range of services, from stock brokerage to asset management, corporate finance, and proprietary trading.”
According to news reports, “Samsung Securities is conducting a study on how to enter the blockchain-based security token business. At the end of last year, the company tried to find the manpower to take charge of the development and operation of the security token trading platform, and the development of blockchain smart contracts, but were unable to find employment.”
Furthermore, seven large domestic securities companies have applied for preliminary approval and establishment of a corporation from the financial authorities for the establishment of a virtual asset exchange in the first half of next year, according to the securities industry of the country.
Easing Of Regulations By Korean Government Is The Main Push
In popular opinion, the easing of regulations by the Yun Seok-yeol government has boosted the entry of securities companies into the asset exchange business.
The local media reports revealed that the Financial Services Commission plans to promote the enactment of the ‘Virtual Currency (Cryptocurrency) Business Rights Act’, which has been continuously requested by the Financial Investment Association and the securities industry.
Furthermore, “the FSC plans to revise the relevant laws and push forward with the Digital Assets Framework Act so that they can be managed in one regulated framework – divided into security-type tokens and non-security-type tokens.”
At the same time, the FSC said that it would examine whether domestic virtual assets are securities.
Moreover, under the new government, the securities industry is considering ways to provide security tokens (STOs), non-fungible tokens (NFTs), virtual currency and virtual asset custody, and wallet services.
“This is because securities tokens and NFTs subject to the Capital Market Act are included in the business area of securities companies, so it is appropriate to trade at ATS in the future. Currently, in accordance with the Act, Enforcement Decree, and Regulations on the Capital Market and Financial Investment Business, the trading target of multilateral trading companies (ATS) is limited to listed stocks and depository securities (DRs),” explained the local media.
On the Flipside
- In the past few years, financial regulators have cracked down on the Korean crypto industry heavily, with the country’s Financial Intelligence Unit halting more than 60 crypto operations.
Why You Should Care
Public opinion is that Samsung’s move to launch crypto exchange will aid large scale cryptocurrency adoption.