Fintech firms can soon offer currency-exchange services

Non-bank institutions will be allowed to directly engage in currency exchange business starting next month as part of a broader deregulation drive to promote the local financial technology sector, the finance ministry said Tuesday.

Under revised regulations on currency exchange, a qualified fintech firm will be able to offer a currency exchange service of up to $2,000 per person through their online platforms.

Such fintech firms are required to make a reserve against potential claims from customers and set up a technical safety system, the ministry said.

In 2016, a total of $5.26 billion was traded in currency exchanges.

The government has been lifting regulations on foreign currency trading as part of a general effort to reduce the administrative regulations that have been cited for holding up market growth.

Yonhap