The Use of Virtual Currencies in Small-value Cross-border Remittances and its Implication

Gongpil Choi, Meeyoung Park, NaEun Park


Despite the efforts by regulatory authorities to promote the Fintech start-ups in the heavily regulated cross-border remittance market, its development has been slow and sporadic. The lingering uncertainty stems from a combination of factors: legacy infrastructures of silo-type for regulatory oversight, a nascent status of global guidelines on the use of virtual currencies, and lack of relevant compliance services for start-ups. This paper highlights the glaring gap of regulatory arbitrage in the use of sovereign fiat currency and its digital counterpart for the cross-border value transfer. Developing a balanced ecosystem via relevant legal, supervisory, and regulatory support should be prioritized before situation-driven fragmented and duplicate regulations are introduced.


Cross-border remittance; virtual currency; Bitcoin; Fintech

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