Only 9 fintech firms out of more than 100 that applied for South Korea’s regulatory sandbox were permitted to carry out business in the country, says Coin Telegraph. These companies deal with technologically advanced services including blockchain, 5G (or fifth-generation telecommunication network) and other similar developments. According to reports, this move was made in accordance with the regulatory sandbox that was given the go signal started in January this year.
The sandbox was approved in January 2019 and has been in effect since April 1 through the Special Act on Financial Innovation Support, says The Korean Herald. According to the Korean government, this move was made to support start-ups, including emerging companies in fintech.
Overseen by South Korea’s Financial Services Commission (FSC), the sandbox allows companies to operate without regulatory restrictions as part of the test run. This experiment allows the regulatory commission to determine what regulations the fintech industry can do without. It also allows the authorities to ascertain what regulations should be placed.
Start-ups and firms that are authorized to operate in South Korea will be able to do so within a trial period reaching up to 4 years.
Aside from blockchain and 5G, this initiative is expected to work with various companies that offer newly developed and innovative services such as payments and money transfers, capital markets, robo-advisers and insurance.
With the regulatory sandbox in place, it seems that South Korea is on the move towards further tech innovations. In fact, Coin Telegraph recognized the country along with the United States and Japan as one of the globe’s ‘biggest fans of cryptocurrency exchanges.’
Meanwhile, South Korean company and tech giant Samsung Electronics has also been penetrating the blockchain and crypto sector by developing its own cryptocurrency, Samsung Coin. This Ethereum-based coin has not been officially confirmed.