Topic: [2017-08-27] Major South Korean Conglomerate Enters Bitcoin Remittance Market (Read 2927 times)

South Korea has always been actively participating in cryptocurrency market. There is always a huge demand as Bitcoin price is always high than international price there. Thus, banking system can't really ignore Bitcoin there. Sooner or later, they would have done that. Recently the government involvement and now banks, Bitcoin is becoming a phenomenon in South Korea.

I love that you feature that famous South Korean singer PSY here. Well, he could really be the face of the cryptocurrency in South Korea...so I am hoping that soon he would be "investing" some of his wealth in Bitcoin too.

Anyway, south Korea is now a hub and an exciting market for Bitcoin and cryptocurrency since the government made a good decision to allow companies involved in Bitcoin to operate in the country and to recognize Bitcoin just like any fiat money coming from abroad or foreign exchange.

And that is why there are now many companies in South Korea who are interested to exploit the remittance market since it is so big and is quite lucrative. And in Asia remittance is a truly huge industry.

South Korean conglomerate, Dongbu Group, has announced a partnership with Bitcoin remittance service provider Sentbe in its bid to enter the Bitcoin remittance market.

The group is collaborating with Sentbe through its savings bank subsidiary, the Dongbu Savings Bank.

According to an official of the savings bank, a Memorandum of Understanding (MOU) was already signed by the partners to prepare for the fourth industrial revolution era.

“We have been working on this business alliance to prepare for the fourth industrial revolution era under the traditional savings bank business.”

Brief background of the partners

South Korean firm Sentbe was a recipient of a financial technology (fintech) award for its foreign remittance service utilizing Bitcoin in 2016.

Through the service, customers can send money to China, Vietnam, Japan, Indonesia and the Philippines at a fee that is up to 95 percent lower than those charged by traditional banks.

The Dongbu Group, meanwhile, is a major conglomerate in South Korea. It produces industry, chemical, shipping, financial and insurance products. Its subsidiary, Dongbu Savings Bank, is a member of the World Savings and Retail Banking Institute (WSBI).

Through WSBI, the bank collaborates with many financial institutions around the world, including Sweden’s Swedbank, Fra-Spa of Germany, Philippine Postal Savings Bank, the Indonesia National Housing Bank, the Sri Lanka National Savings Bank and the Thai Government Savings Bank.

South Korea’s legalization of Bitcoin remittances

The South Korean government has amended the Foreign Exchange Transactions Act in order to legalize Bitcoin remittances. The amended law took effect on July 18, 2017.

Under the law, fintech companies planning to provide Bitcoin foreign exchange transfers should register with the Financial Supervisory Service (FSS). They should also comply with certain financial requirements like a paid-in capital of more than two bln Won (around $1.77 mln), and a debt-to-equity ratio of less than 200 percent.

Source: https://cointelegraph.com/news/major-south-korean-conglomerate-enters-bitcoin-remittance-market