Major domestic securities companies have made a statement that the preliminary approval for the establishment of a virtual asset exchange and the application for establishment of a corporation are groundless.
On the 23rd, officials from major securities companies such as Mirae Asset Securities, Samsung Securities, NH Investment & Securities, and Shinhan Investment & Securities responded, “The news about the establishment of a virtual asset exchange is not true.”
Earlier, Newspim reported on the 22nd that seven large domestic securities companies would apply for preliminary approval from the financial authorities to establish a virtual asset exchange in the first half of next year.
In response, officials from several major securities companies, including Samsung Securities and NH Investment & Securities, said, “The news about the establishment of the alternative trading system (ATS) seems to have been misrepresented.” “The establishment of an alternative exchange has absolutely nothing to do with the virtual asset exchange.” .
An alternative trading system (ATS) is an exchange that replaces the stock trading function of the existing stock exchange. The Korean stock exchange market has been monopolized by the Korea Exchange (KRX). Unlike regular stock exchanges, ATS does not have functions such as listing review and market monitoring. It has only functions related to the execution of stock trading.
As such, ATS has advantages in that it requires fewer personnel and costs compared to existing exchanges, and the time required for stock trading from the customer’s point of view is reduced. Currently, 7 large domestic securities companies, led by the Financial Investment Association, have formed a task force and are working on preliminary approval of an alternative exchange and establishment of a corporation.
In the end, the news of ATS preparations was misrepresented as the news of the establishment of a virtual asset exchange, according to brokers.
A securities industry official said, “It is true that some securities companies are interested in the virtual asset business.” But, “It is not common sense for institutional securities companies to publicly promote the establishment of virtual asset exchanges in a situation where there are no clear regulations on virtual assets in Korea.” said.
Nevertheless, securities firms are showing steady interest in the virtual asset business, such as hastening to develop their own wallets.
* Reference: 220808 FSC Unveils Financial Policy Agenda of the New Administration
