Korean FSS Director “We will support the Special Act on Financial Innovation for blockchain”
Junghoon Kim promises blockchain regulatory sandbox laws for the financial sector by the end of March 2019.
As reported in Seoul Economy (Seoul Gyungjeh) this afternoon, the Special Act on Financial Innovation Support has been passed by the Financial Supervisory Service (FSS) with a focus on blockchain regulatory sandboxes. Through this Act, innovative financial services, including those in the blockchain industry, will receive institutional support from government agencies.
The Act is meant to create a regulatory sandbox for blockchain technology related to fintech, which would provide institutional support for corporate innovation initiatives, and would provide legal grounds for investment in the industry.
A ‘regulatory sandbox’ is a system of exempting or deferring regulations on new technologies or services based on existing laws and regulations.
Junghon Kim, FSS director, issued comments about the passing of the Act at the recent Blockchain Security Conference. He made clear that National Assembly plans to enact laws by the end of March of 2019 as part of the Act, and to designate innovative financial services by the second quarter of 2019.
If the regulatory sandbox is designated as an innovative financial service, it will be applicable to various existing regulations in the financial sector.
Kim stated, “We are strengthening communication and analysis of blockchain use-cases and the creation of a regulatory environment through cooperation with a consortium of blockchain companies.”
