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The Bank of Korea recently said that cryptocurrencies do not pose a major threat to the country’s financial industry.
According to a media report, the bank said that in comparison to the level of investment in local financial companies and equity markets, the digital asset investment landscape is rather small.
As such, the risks posed by the sector are insignificant. Consequently, the bank does not expect the local crypto industry to have much of an impact on the country’s financial market.
The same source pointed out that by the end of last year, local banks had in their holdings $1.79 billion worth of digital assets. This amounted to about 8% of the total deposits held by brokerage houses.
It also said that “‘if the technical issues of crypto are given medicine and the acceptability of crypto in the whole society is at its vanguard,” digital currencies cannot be prevented from being an investment tool and means of payment.
FSC Also Positive
South Korea’s Financial Services Commission (FSC) also seems to have taken a positive stance. It does not oppose virtual currencies and is poised to take part in the G20 resolution of cross border crypto regulations.
Crypto community members received the report with enthusiasm. Alex Karasulu, the founder and co-CEO of OptDyn said:
“
South Korea’s directional pivot removes another brick in the wall. In fact, it removes several bricks because it demonstrates the futility, yet again, of governments resisting the global cryptocurrency tsunami.”
He further pointed out that China’s move to ban the sector had severe repercussions when crypto capital fled to “progressive neighbors” such as Singapore and South Korea.
The South Korean government is said to have prepared a draft proposal of industry classification standards that might shed more light on the sector.