Through its securities division, industrial and technology giant Samsung plans to create a platform dedicated to bitcoin and cryptocurrencies in the first half of 2023. This is stated in a document filed with the South Korean financial regulator.
The Goal of Cryptos Development in South Korea
Samsung Securities, a subsidiary of Samsung Futures Inc., has expressed interest in establishing cryptocurrency exchanges in South Korea. This was announced on August 22 in a tweet from Digital Galactics. Despite this announcement, Samsung Securities does not have the necessary staff to create a crypto exchange. However, they opened the market for blockchain-based security tokens.
An unnamed source familiar with the matter revealed Samsung’s ambitions for bitcoin and other cryptocurrencies: “The exchange of crypto assets is active around the world, and the size of the market is increasing every year.” In addition, the documents show interest in blockchain and financial technology tokenization around the world.
Korean financial news publication Newspin reported that Samsung Security has teamed up with 6 other Korean financial companies to create a “crypto platform”. The intention of the partnership is to establish an exchange in the first half of 2023. In addition to Mirae Asset Securities, Korea’s largest investment bank, license applications have been submitted to the country’s financial regulator.
Mirae Asset Securities wants to manage several digital assets, including non-fungible tokens, Ethereum and Bitcoin. If it turns out that 7 participants work together, each of them can pursue their own goals.
Samsung is the world’s largest telephone company with $220 billion in annual revenue and 400,000 employees. The Korean giant is also ranked as the 6th most powerful company in the world.
Yoon Seok-yeol’s government plans to develop a framework law on digital assets. Part of this is the cryptocurrency exchange project; the goal is to regulate and facilitate the use of insecure and security tokens.
Small crypto exchanges in South Korea have publicly announced their intention to sue the government. Their reasons stem from their belief that the government is neglecting its duty to regulate exchanges and the cryptocurrency industry.
Moreover, these exchanges believe that insufficient government regulation has led to several hacks and scams. If South Korea can properly regulate cryptocurrency platforms and users, the country’s cryptocurrency industry will flourish.
Is South Korea contributing to the recovery of cryptocurrency markets?
South Korean President Yoon Suk-yeol has vowed to pass crypto-friendly laws. However, after the closure of the Terra cryptocurrency exchange, the government became stricter. To ensure compliance, the president ordered several raids on exchanges and sanctioned users who failed to register properly.
Samsung recently announced plans to revolutionize bitcoin mining with powerful new chips. This announcement came days after Korea eased its crypto policy. Therefore, some suggest that the next wave of growth in the crypto industry will begin in Seoul.
According to recent statements by the South Korean government, crypto assets will be taxed. This includes staking rewards and assets from existing coins. Two brokerage firms called Mirae Asset Securities and Samsung Securities plan to open cryptocurrency exchanges in 2023.