The blockchain-based small-sum currency remittance service provider Moin could not get government approval.
The government excluded Moin’s application to enjoy the regulatory sandbox to do money transfer business. The Financial Supervisory Commission (FSS) denied the request.
The denial did not surprise Moin as the FSS blacklisted cryptocurrency, initial coin offering and blockchain platform as tools for crime financing, money laundering, and tax evasion.
Also, only banks are licensed to do money transfer service in South Korea.
Despite the denial, Moin and other blockchain-based currency transfer service providers are doing business through online ads. However, customers could not get legal protection once they use the services.
Many Asian workers in South Korea have used Moin and the other unlicensed service providers because fees are cheaper and transfer time is shorter.
The Ministry of Science and ICT held a meeting Tuesday to review new-technology applications for exemption from the current regulations.