South Korea financial regulator Financial Services Commission, is to undergo significant organizational restructuring changes. The changes are geared towards aligning the agency?s operations, as focus shifts towards coming up with crypto policy initiatives and frameworks.
The agency is in the process of setting up a bureau, tasked with the responsibility of overseeing financial innovations mostly touching on cryptocurrencies. Dubbed the Financial Innovation Bureau, the department will have to come up with policies that will oversee the blockchain industry.
The unveiling of the new department is part of South Korea?s push to be part of the ongoing fourth Industrial revolution era. The department which has a two-year lifespan is expected to help nurture the country?s fintech industry while focusing on cryptocurrencies and blockchain technology.
In addition, the FSA is to collaborate with the Insurance Supervision and Management Committee of the Bank of China as they move to integrate the Financial Supervisory Cooperation agreement. The two are to expand their monitoring experience and information exchange, in a bid to curb money laundering.
South Korea has upped its collaboration with neighbors as it seeks to enhance regulation of the cryptocurrency space as a way of averting illegal activities such as money laundering. The country?s top regulators have already met with their counterparts from China and Japan in a bid to come up with policies and initiatives that would spur blockchain innovations while averting the risks posed by cryptocurrencies.
?In a meeting with the China Securities Regulatory Commission, a cooperative channel was set up, including the establishment of a working-level hotline ? it will jointly respond to new emerging global supervisory and regulatory issues such as international financial regulation, virtual currency, ICO [initial coin offering] and fintech,? a report said.
In January, the South Korean government implemented a new real-name system that requires crypto exchanges and commercial banks to review the account names every six months of people engaged in cryptocurrencies. The requirement is part of the government push to stem the use of cryptocurrencies for money laundering purposes. Four of the country?s biggest exchanges currently operate real name account contracts.