According to the Yonhap Infomax report, the central bank of South Korea is searching for a firm that can build a new blockchain system in order to improve record-keeping for the market. A local official said that bond transactions could be recorded on the blockchain and form the basis for a “real-time simultaneous payment trading system.”
Blockchain system would be designed to be shared between financial institutions
According to the news report, the blockchain system would be designed to be shared between the relevant financial institutions, as well as the Bank of Korea and Korea’s financial watchdog Fair Trade Commission. The report further reveals that the Bank of Korea is unlikely to launch a blockchain bond system until it has greater regulatory clarity on whether it would be ultimately responsible for any accidents or failures.
South Korea to soon introduce new tax laws for crypto.
Currently, there are no specific taxation laws for cryptocurrency in South Korea. But the country has been studying other countries on how to approach this matter. South Korea’s Ministry of Economy and Finance has been pushing to include profits earned via crypto to be taxed. According to local reports, the ministry is planning to introduce such a bill by the mid-2020. Currently, there is no legal status of cryptocurrency in the country.
The South Korean bond market is one of the largest markets in Asia, and setting up a blockchain system for it could give it a further boost. Earlier, the World Bank and Commonwealth Bank of Australia raised a total of $108 million through bond sales held on a private version of the ethereum blockchain.