South Korean Remittance Firms Join Blockchain-Powered RippleNet

South Korean Remittance Firms Join Blockchain-Powered RippleNet

Some money transfer companies in South Korea have joined Ripple’s blockchain-powered RippleNet.

RippleNet allows financial institutions to provide a quicker and more reliable way of sending money around the world.

For many years, Korea’s remittance market was dominated by large financial institutions, which resulted in high transfer fees and delays.

However, changes in regulations that were introduced in 2017 allowed non-bank firms to offer money transfer services.

Cross’ first mobile remittance app in South Korea

Coinone Transfer has entered into partnership with RippleNet to benefit from its remittance product ‘Cross’, which is the first mobile remittance app in South Korea.

Most importantly, this blockchain-based app offers fast, cheaper payments to nearby countries, such as Thailand and Sri Lanka.

Coinone Transfer has witnessed a 50 percent month-on-month rise in payment volume since its incorporation in 2018. Moreover, the company managed to cut fees by 90 percent compared to charges of banks.

In a related context, Ripple has added Sentbe, WireBarley and Hanpasa to RippleNet, which reflects the urgent need for improved remittance services across borders.

For his part, Emi Yoshikawa, director of global operations, said:

“Since the Korean government started licensing payment providers for remittance in 2017, we have witnessed how Korean payment providers dramatically improved payments experience for their customers.”

“South Korea is a hotbed of fintech innovation, and we’re committed to grow our customer base and presence,” Yoshikawa added

Ripple expands presence globally

Earlier, Cryptolydian reported that Bitkub, a Thailand-based cryptocurrency exchange, has formed a partnership with Ripple.

In addition, Ripple had concluded several partnerships with several exchanges, including US-based Bittrex, Mexico’s Bitso, Singapore’s Bitrue, Philippines’ Coins.ph and Luxembourg’s Bitstamp.

Moreover, Ripple has signed a collaboration agreement with Thailand’s oldest bank SCB to provide a remittance service called SCB Easy, which is a mobile application that offers overseas payments at low costs.

S. Korea mulls 20% crypto tax

South Korea’s government is considering a proposal to levy a 20 percent tax on cryptocurrency transactions.

Under the proposed law, a 20 percent tax will be levied on 40 percent of the total other income, while the remaining 60 percent will not be subject to tax.  

In addition, the Ministry of Finance has ordered its income department to review the draft law.

The country seeks to join Japan, Russia, Iran, China, and other countries in the crypto marathon.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.