South Korea to Establish Digital Currency Policy-Making Department

South Korea's financial authority confirmed on July 19, 2018, the implementation of a policymaking department focused exclusively on blockchain technology and related domains.

As reported on The Korea Times, the country's Financial Services Commission decided after careful consideration of the burgeoning blockchain industry and a crucial need for regulation to ensure optimal growth.

The decision is part of an ambitious state-backed plan to restructure existing frameworks and lead financial innovation in the "Fourth Industrial Revolution," a term prevalent in recent times after the relevance of several technologies, such as Artificial Intelligence, Machine Learning, and blockchain.

As part of the efforts, the purported Financial Innovation Bureau will be established shortly.

At the time of writing, reports suggest the Financial Innovation Bureau will be a temporary organization limited to a two-year lifespan.

"The new Financial Innovation Bureau will also be tasked with policy initiatives for financial innovation, such as innovating financial services using fintech or big data, and responses to new developments and challenges such as cryptocurrencies."

It is unknown if a successful tenure will lead to a permanent government fixture for the Financial Innovation bureau.

The agency reportedly sides with Korea's Financial Stability Board's stance on cryptocurrencies that claimed the digital tokens "Do not pose the material risk to global financial stability."

The Bank of Korea expressed a similar sentiment towards the global crypto asset market in July 2018.

Citing December 2017's monumental Bullrun, the central bank stated the relatively small size of the crypto-industry represented a "Limited risk" to traditional financial markets and institutions.