The S Korean Presidential Committee on the Fourth Industrial Revolution (PCFIR) has recommended the government to permit fiscal institutions to launch cryptocurrency-based financial products.

Local English-linguistic communication news outlet BusinessKorea reported on Jan. 6 that the commission recommended products such equally Bitcoin (BTC) derivatives to be allowed as part of a strategy for the institutionalization of cryptocurrencies.

Crypto avails are here to stay

The PCFIR also suggested that the local financial sector should develop and innovate a Korean custody solution to avoid relying merely on foreign custodians when treatment crypto avails. The commission as well noted that Bitcoin should be listed directly on the Korea Commutation — the country'south sole securities operator located in Busan.

The committee likewise advised the regime to consider introducing business licenses or guidelines for cryptocurrency exchanges and integrating products related to crypto-assets into the financial system in the mid to long term. The committee reportedly stated:

"As of May 2022, daily crypto-asset trade hit more than lxxx trillion won (over $68 billion) in the world, so information technology is no longer possible to end crypto-asset trade. [...] The Korean government has to gradually allow institutional investors to deal in crypto assets and promote over the counter (OTC) desks dedicated to institutional investors' trade."

Formed by presidential decree in 2022, the PCFIR coordinates policy initiatives and recommendations regarding the evolution of new science and technologies in Republic of korea. The committee organizes forums and deliberates on the roles of new applied science in improver to organizing public campaigns and measures to support the adoption of new tech.

While S Korean policymakers telephone call on the authorities to provide a more than comprehensive framework and infrastructure for digital avails, some gaps even so remain. South korea's government stated that under electric current law, it cannot impose income taxes on individuals' profits from transactions of cryptocurrency.

Still, this did not prevent the South Korean taxation bureau from imposing a $68.nine million (80 billion won) revenue enhancement bill on major cryptocurrency exchange Bithumb. The exchange is reportedly considering authoritative litigation to avoid the expense.