South Korean converts OK Cashbag points into cryptocurrency

The company behind OK Cashbag is the oldest and most popular loyalty programs in South Korea, is studying the plan of conversion of the accumulated user points into cryptocurrencies.

Program OK Cashbag was launched in 1999 by company SK Planet, a unit of communications giant SK Telecom, to reward users who purchase goods and services from retailers SK. In a recent interview with representatives of SK Planet said that the plan to implement a blockchain system for tokenization users accumulated amounts were transferred to the management of the company.

One aspect of this plan is the creation of so-called stablecoin is stable cryptocurrency, the value of which is fixed. Now all the accumulated user points program tied to the Korean won.

Despite the fact that the offer, while existing under the name OKX, is still under discussion, it still is a notable development, given the number of users of the program OK Cashbag, and sellers receiving payment for the points.

According to the report, currently the program involves more than 35 million users, and over 50,000 affiliated retail outlets where consumers can spend their accumulated points. With the accumulation of more than 50,000 scores, users can also exchange them for cash. Although SK Planet are unable to calculate the exact value of the points currently in the system, the company expects that the amount exceeds $100 million.

The report also notes that if the firm still decides to implement the initiative, it may face hurdles from regulators. The system of accumulation of points OK Cashback currently is classified as «prepaid electronic means of payment». Companies offering this type of service must obtain permission from the financial services Commission in South Korea.

Since the South Korean government has not yet adopted a legislative framework for cryptocurrencies is unknown whether or not plan SK Planet’s approval in accordance with the mandate of the Law on electronic financial transactions.

Despite the fact that the regulation for cryptocurrency in South Korea have not yet been adopted, regulators are closely watching the industry. In late June, South Korea tightened
supervision of the accounts of cryptocurrency exchanges. According to the amendments, exchange service, banks are required to control the movement of all funds of cryptocurrency companies and to inform FSC of any suspicious transactions.

While the authorities are paying much attention to the development of the blockchain. Last month it became known that the country invests
about $200 million in development projects in the blockchain. They will include pilot projects in the areas of electronic document circulation between countries, marine logistics, real estate registration, online voting, customs clearance and accounting of livestock productivity.

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