As reported on Friday July 5, the local news outlet Yonhap, according to the report of the South Korean Central Bank of Korea (BoK), the outstanding balance of digital currency accounts in national banks at the end of December 2017 was only $1.79 billion.
The BoK report says that the figure of $1.79 billion (2 trillion won) is relatively low, as it is equivalent to about 8% of total deposits held by brokerage companies in the country and is estimated at 26 trillion won ($23.27 billion). Therefore, they suggested that the cryptocurrency doesn’t pose a threat to traditional local financial markets:
“The volume of investment in crypto assets is small compared to other stock markets, and the impact of local financial institutions on the possible risks of digital assets is negligible. We expect that against this background for the South Korean financial market, crypto assets will have a limited impact.”
The BoK data set also captured the height of the unprecedented growth of the crypto markets at the end of 2017, when Bitcoin (BTC) famously picked up $20,000.
Remarkably, the Central Bank’s statement about a minor risk of crypto costs for the traditional financial sector falls on the same week when the Korean Financial Services Commission (FSC) stated that it doesn’t oppose the cryptocurrency and plans to join the G20 vision of a unified transnational crypto regulation.
The March G20 summit proposed a July deadline for the drafting of regulatory recommendations on cryptocurrencies, urging “international standard-setting bodies (SSBs)” to assess the necessary “multilateral responses”, which were then proposed for a global realization.
Korea reaffirms the multilateral vision of the G20 of future crypto regulation perhaps because it considers it a decisive factor for the country’s internal crypto sphere in the future. Important positive news was received from the government throughout the spring, in particular, including plans to lift the country’s total ban on domestic Initial Coin Offerings (ICOs).
Last week, as a result of the adoption of the necessary laws, three ministries of the Korean government disclosed a draft new industry classification of standards, which primarily recognizecrypto exchanges as regulated financial institutions.