7 South Korean Securities Companies Are Planning to Open Crypto Exchanges in 2023. - Document
The introduction of cryptocurrency exchange platforms might happen as early as next year thanks to a number of significant South Korean securities companies, many of which might be connected to significant commercial banks and business organizations.
According to Newspim, "seven prominent domestic securities companies" are hoping to start "virtual asset exchanges" in the "first half of next year" and have already submitted an application for "preliminary approval" to financial regulators.
The seven companies' names were kept a secret. However, a representative of one of the securities firms who wished to remain nameless was cited as saying that the "discussions necessary for the establishment" of an exchange were "now being finished."
The same news source explained that the companies planned to submit their "corporate establishment applications" before 2022 expired and that their "preliminary authorization" procedures would probably be finished by the "end of this year."
The seven could include some of the largest securities players in South Korea who have already declared a desire to enter the cryptocurrency market.
The largest player in the country's securities and insurance markets, Mirae Asset Securities, may be one of these companies. According to Newspim, the company started its cryptocurrency business "at the group level" and has already designated a subsidiary to oversee its crypto-related operations.
A variety of crypto-related disciplines, such as those involving bitcoin (BTC), ethereum (ETH), and non-fungible tokens (NFTs), are apparently among the ones in which the company is reportedly seeking "research and development professionals."
While this is going on, Samsung Securities, one of Mirae Asset's main competitors, has "conducted a study on how to enter the blockchain-based security token business."
According to the media site, the company looked for professionals to work with it to create and run a dedicated security token trading platform and create smart contracts based on the blockchain, but it had trouble locating the talent it needed.
Also listed as companies that may be developing an interest in starting crypto exchange-related operations are the banks Nonghyup and Kookmin, both of which have crypto-related business arms and securities-related services.
According to experts, President Yun Seok-pro-business yeol's stance on cryptocurrencies is in accordance with the "entrance of security companies into the cryptoasset exchange market." Experts concur that the industry anticipates "easing" of rules in the coming months.
Several banks intended to enter the cryptocurrency market before a minor crackdown on the industry in early 2018. But after these things happened, the majority abandoned their intentions. But if Yoon keeps his word, they could be persuaded to reconsider their earlier plans.
Earlier this month, Cryptonews.com revealed that SK Securities, a multibillion dollar business company, has declared plans to partner with a local bank to establish a "digital asset custody firm."
Additionally, this month, Hyundai Motor Securities (a Hyundai subsidiary) signed a contract with the cryptocurrency exchange Bithumb that will enable users to obtain real-time market pricing information and verify the status of their cryptocurrency holdings.
Domestic banks have already made investments in or examined custody solutions for cryptoassets, including the aforementioned Nonghyup and Kookmin as well as their rival Shinhan. In addition, the SK subsidiary SK Square purchased a 33.2% interest in the Korbit cryptocurrency exchange in January.