South Korea legalizes bitcoin

Very soon, Bitcoin will be added to the approved list of technologies for making international payments in South Korea, and FinTech companies will be given permission to provide such services.

Starting July 18, FinTech companies will be able to register with the Financial Supervision Authority. After that, the provision of international money transfer services to Bitcoin will become legal. To obtain permission, you need to own an asset in excess of 2 billion won (about $ 1.75 million) and a debt to equity ratio of less than 200%, The Herald explained, adding that a one-time transaction with FinTech’s company will be limited to $ 3000, and an annual limit for one accounts will be $ 20,000.

Legalization of international transactions Bitcoin in South Korea will jeopardize traditional bank transfers, experts say. Currently, the bank commission for a transaction of 1 million won is from 50,000 to 60,000 won. The fees for FinTech companies will be much lower, from 3,000 to 40,000 won.

As for the time of the transfer, FinTech whistles around banking institutions. Currently, a standard banking operation takes from 2 to 3 days. Meanwhile, Bitcoin Coinone, a money transfer service provider, charges 1% as a commission, and “payment is made within 3 minutes after confirmation.”

In response, Keb Hana Bank reduced the fee on some transactions to 10,000 won, and Shinhan Bank is considering the introduction of an international money transfer system based on bitcoin.

Kang Mi-Rong, a senior fellow at the Hana Institute of Finance, commented:

“Banks need to find simple and inexpensive ways to transfer money abroad with an acceptable commission. Based on Infosys statistics, the global money transfer industry will grow to about $ 600 billion this year. About 40 FinTech companies plan to go public swimming from mid-August. 10 trillion won ($ 8.7 billion)."