Starting next month, it will be possible to make currency swaps for up to $1,000 and $2,000 via automated kiosks and online services operated by fintech firms. (Image: Yonhap)
SEJONG, Feb. 21 (Korea Bizwire) – Starting next month, it will be possible to make currency swaps for up to $1,000 and $2,000 via automated kiosks and online services operated by fintech firms.
The government announced on Tuesday that it had been working on modifications to foreign currency exchange regulations which it expects to go into effect in March.
The right to operate these two currency exchange models will be opened up to fintech firms outside of the financial services sector.
Since this makes it possible for individuals to verify their identity on a face-to-face basis, online services are permitted to handle larger transaction amounts than automated kiosks. (Image: Yonhap)
While automated kiosk users will be able to withdraw their cash on the spot, those who make use of online services will have to arrange to pick up their money at a specific location or have it delivered to their home. Since this makes it possible for individuals to verify their identity on a face-to-face basis, online services are permitted to handle larger transaction amounts than automated kiosks.
The government will mandate operators of these currency exchange services to hold reserves and have compensatory measures in place.
As of last November, there were 1,639 currency exchange operators in place, with accommodations businesses comprising the largest proportion (35 percent).
In 2016, currency swaps amounted to $5.26 billion in total, with $4.23 billion bought and $1.03 billion sold.
Kevin Lee (kevinlee@koreabizwire.com)
