Cryptocurrency exchanges and blockchain developers could turn their crypto innovations into commercial use as the government would review them under the regulatory sandbox.
The optimism is emerging after President Moon Jae-in introduced the regulatory sandbox whereby innovative products, both financial and manufacturing, would enjoy regulatory exemption from the existing rules once they pass the review.
The Financial Supervisory Service (FSS) said about half of the applications for the regulatory sandbox review comprise blockchain platforms and cryptocurrency projects.
An FSB official said once they pass the review, financial institutions and fintech players can contribute to the innovation in financial markets.
He said the financial regulatory sandbox would be effective from April. The official said the government has been making efforts to introduce blockchain platforms for upgrading financial services.
However, the government would not allow initial coin offerings and other crypto assets, until global standards and rules are in place.