Categories: Bitcoin Business

South Korea to Lower Capital Requirements for Bitcoin Remittance Businesses

Click here to view original web page at

The South Korean government is working on lowering the equity capital requirement for fintech companies offering foreign exchange (FX) transfer services, including those using bitcoin for remittances. With the aim “to boost Bitcoin-mediated foreign currency transfer market,” the change will be effective on June 18, according to South Korea’s leading daily business newspaper.

Also read: Why South Korean Bitcoin Adoption Could Outpace Most Other Countries This Year

Lowering Capital Requirements

Maeil Business Newspaper’s English language website, Pulse News, reported this week that the South Korean Ministry of Strategy and Finance has decided to lower the equity capital requirement for fintech companies offering FX transfer services.

Effective on July 18, the capital requirement will be reduced from 2 billion KRW to 1 billion KRW (approx. 900,000 USD, at press time).

The current 2 billion won requirement is outlined in the revised Foreign Exchange Transactions Act, which the ministry detailed in February. The aim of this revised act is to provide standards for small companies offering cross-border remittance services. However, this bill has been heavily criticized because the 2 billion won equity criteria is considered too high for most small fintech firms.

Effects on Bitcoin Companies

Since the law concerns foreign currency transfers, only bitcoin remittance service providers are affected, according to leading South Korean Bitcoin wallet provider and exchange Coinplug. These companies are included in the law because they accept Korean won and deliver funds in a foreign currency at the destination, the company told Pulse News refers to this set up as “Bitcoin-mediated foreign currency transfer.”

Coinplug also confirmed that Bitcoin remittance businesses currently have to qualify for the 2 billion KRW capital requirement, which is expected to be lowered to 1 billion KRW. However, this law “does not effect Coinplug,” the company claims, adding that “We meet the requirement.”

Overall, the company believes that the lower equity capital requirement will likely attract more fintech and Bitcoin companies to the market.

Benefits of Bitcoin Remittances

“The biggest advantage of Bitcoin-mediated foreign currency transfer is the cheaper and faster remittance,” Pulse News wrote. Currently, banks use the SWIFT network for FX transfers which takes two to three days and can cost up to 6 percent of total remittances, the publication conveyed. In addition, “Commercial banks have raked in some 500 billion won as fee income from foreign currency transfer services each year.” Bitcoin remittances, on the other hand, can be done on the same day for about 1 percent fee, Pulse News concluded.

The Korean won is currently the fourth most traded bitcoin market. In an interview with in January, Korbit CEO Tony Lyu talked about the growing popularity of using Bitcoin for international remittances in South Korea. The CEO of the second-largest bitcoin exchange by volume in the country said:

Remittance companies are also using bitcoin in the back-end of their services. So, many customers in Korea are using bitcoin and benefiting from it without even being aware of it.

What do you think of South Korea the lowering capital requirement? Let us know in the comments section below.

Images courtesy of Shutterstock, Coinplug, SWIFT, and South Korean government

Need to calculate your bitcoin holdings? Check our tools section.


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by

Recent Posts

Bitcoin’s Bulls Now Have a Target of $13.2K, Monthly Chart Suggests

View Bitcoin charted an "inside bar" pattern last month, making $13,200 the level to beat for the bulls. A convincing… Read More

6 hours ago

Japan to Solarize Its Burgeoning Digital Economy, Expert Take

Society is now witnessing the implementation of digital currencies, artificial intelligence (AI) and blockchain technology worldwide. These new digital technologies… Read More

6 hours ago

Mass Media’s Phony Freakout Over Bernie’s WaPo Criticism Is Backfiring

Authored by Caitlin Johnstone, After days of ridiculous, hysterical garment rending by mass media talking heads in response to Senator… Read More

12 hours ago

Quadriga CX Dukes It Out with “Failing” Auditing Firms

Quadriga CX , the crypto exchange in Canada that lost all access to customers’ funds when its founder passed away… Read More

12 hours ago

The Bearish Trends That Continue to Strike Bitcoin

At press time, bitcoin – the granddaddy of all crypto – is once again down for the count. Bitcoin Is,… Read More

12 hours ago

Will Growing Interest from China Propel Bitcoin’s Price Higher?

Bitcoin (BTC) has incurred a significant amount of volatility as of late which was perpetuated yesterday by news regarding the… Read More

12 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More