Korean financial govt institutions working on a crypto-backed payment system

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South Korea’s Financial Supervisory Service (FSS) trying to figure out the possibilities to drag a method to bring payments via cryptocurrencies use.

South Korea is a technology adoptive country and the country imposed highly strict rules and systems, to achieve a better ecosystem for the citizens and also to allow only selected crypto companies & crypto projects in the country. Right now only 5 crypto exchanges are actively providing full fiat-crypto services. 

On 3 June, Local news outlet Money Today Co. reported that Financial Supervisory Service (FSS) started its investigation into payment gateways to bring the use of Cryptocurrencies networks. 

According to the report, FSS ordered 157 payment gateways to report about the association & realation of crypto with traditional financial systems. 

FSS also asked the payment gateway Companies to report their plans for the future, and disclosure of digital assets.

FSS’ Digital Assets Committee 

FSS agency is a leading & main regulatory body in South Korea, which keeps the regualtion work on crypto in its hand fully. But on 31 May, FSS launched the “Digital Assets Committee” to create a framework for the crypto assets space following the Luna-Terra ecosystem collapse.

According to the official announcement, the newly launched team will introduce a barrier for all-new crypto companies, which includes crypto assets and products. All the new crypto assets will go through the screening test before the launch in the South Korean crypto market. 

The digital assets Committee will also keep market monitoring, trade monitoring, a level of disclosure, and other investor protections to keep manipulation or suspicious activities away. 

These things are showing that South Korea is highly aware of unfair/illicit activities to keep citizens away from any kind of high-level risk. 

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