South Korean nonbank institutions will be allowed to engage in currency exchange business starting March, Yonhap News Agency reported Feb. 20, citing the country's finance ministry.

The move is part of the country's wider deregulation drive to promote the local financial technology sector.

Under guidelines on currency exchange, a qualified fintech firm will be allowed to offer currency exchange services of up to US$2,000 per person through their online platforms.

Qualified fintech firms will be mandated to make reserves against potential claims from customers and set up a technical safety system, the report added.