It appears as if interesting things will happen for Bitcoin in South Korea. A new document has surfaced indicating Bitcoin remittance organizations will require lower capital requirements This is a positive step in the right direction. Bitcoin can make a big impact on the global remittance sector thanks to lower fees and global availability. These changes go into effect come June 18th.
The government of South Korea keeps an open mind toward Bitcoin and cryptocurrency. That is a rather refreshing development, considering a lot of politicians don’t like Bitcoin. The country has acknowledged Bitcoin can be a beneficial tool for the remittance sector. As such, a new regulation will be introduced soon to lower capital requirements for Bitcoin remittance companies. This is a significant development that will help shape the future of cryptocurrency.
As Pulse News mentions, the South Korean Ministry of Strategy and Finance made this critical decision. Any fintech company providing foreign exchange transfer services will be affected in a positive manner. The capital requirements will be reduced to 1 billion Korean Won, which is half of the current requirement. This change allows smaller companies to compete in the local remittance market, which can only be a positive development.
Bitcoin remittance providers will benefit greatly from this change. Fewer capital requirements will lead to new startups providing Bitcoin-based foreign exchange services in the future. South Korea can become quite the competitive market for cryptocurrency remittance companies in the future at this rate. More competition benefits the consumer and gives Bitcoin a more legitimate appeal as well.
This news comes on the heels of more positive news about Bitcoin in South Korea. Local exchanges are generating a lot of trading volume, indicating a growing demand for cryptocurrency. Companies such as Bithumb have quickly gone from “relatively unknown” to “leading Bitcoin exchange” in a short amount of time. South Korea is an integral part of the future of Bitcoin, that much is certain.
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