South Korean Officials Pondering Possible Revision of Current Crypto Regulations

As per an all-new report released by South Korean media outlet ZDNet yesterday, the nation's financial regulator is “reportedly” considering revising its existing economic framework in regards to digital assets/cryptocurrencies and how they should be governed.

As part of the ongoing Deconomy Conference that is taking place in Seoul as we speak, government officials were quoted as saying that they were looking to “re-evaluate” their current policies so as to help facilitate the “growth and maturity of the cryptocurrency market” in a more streamlined manner.

What’s more is that one official even highlighted the need for creating a financial framework wherein entities working within the nation’s crypto industry could easily interact with other financial institutions as well as government-related organizations.

On the subject, Song Hee-kyong, co-president of the 4th Industry Forum of the National Assembly, was quoted as saying:

“The government has misunderstood the virtual currency and tried to meet the real currency standards, so there are various problems.The industry does not stand still while waiting for the regulatory sandbox authorization, so it is just like keeping it in the box.”

More on the Matter

According to local media sources, S.Korean lawmakers are allegedly showing a lot of willingness to help propagate the use of blockchain technology within a host of national economic domains. With that being said, it should also be pointed out that Jung Byung-kook, chairman of the 4th Industry Special Committee of the National Assembly, gave a speech during Deconomy 2019 where he laid particular importance on the need for governments to “remain cautious” and take a “conservative approach” in regards to this burgeoning technology (and how it should be implemented within various industrial sectors within the country).

At this point in the article, we need to also point out that the South Korean government issued an “explicit ban” on all initial coin offerings (ICOs) late last September— on the pretext that the fundraising method was comparable to “gambling” since it provided investors with little to no safeguards in regards to their investments.

Final Take

In closing out this piece, it should be pointed out that the S.Korean government issued a statement in January (earlier this year) signalling that the aforementioned ICO ban would remain in place — primarily because the country’s Financial Services Commission (FSC) had discovered that many local firms were still conducting ICO-related operations simply by initiating them within different foreign jurisdictions.

Last but not least, earlier last month the South Korean Supreme Prosecutors' Office (SPO) released a circular stating that they would be establishing a “task force” to help curtail any cryptocurrency-related frauds/crimes taking place within the nation. According to a representative for the government body, the task force will look into all matters related to:

  • Fraud
  • Illegal money laundering
  • Any shady activities related to the field of fintech and cryptocurrency.

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