Regulation: South Korea wants to review its cryptocurrency legislation

Protect without forbidding – The South Korea is at a crossroads like many other countries. The new paradigms inherent in cryptocurrency challenge the certainties of financial regulators around the world. How to regulate the staking ? the lending ? The stablecoins ? It’s a whole new ecosystem to understand, to regulate without restraining or destroying it. Welcome to a new world with legal borders that are still damn vague.

South Korea wants to protect consumers…

A scalded cat fears cold water, the saying goes. The case Terra Luna indeed had disastrous consequences in terms of image for the South Korea. The whole world has turned its gaze to the original homeland of what will go down as the trigger for the most serious crisis existence of the cryptocurrency sector. Following this, the authorities therefore decided to take matters into their own hands.

Last June, the government announced the creation of a Digital Assets Committee responsible for overseeing the sector. And to complete the measure, financial regulators across Asia and the Pacific were invited to collaborate to avoid another disaster. Financial Services Commission Chairman Kim Joo-hyun told local media that a ” working group of private experts and government departments would quickly review cryptocurrency legislation”.

The goal is to quickly provide “13 bills in the nation’s National Assembly regarding digital assets and investor protection”. Bok-hyeon Lee, the head of the Financial Supervisory Service, adds:

“We will spare no effort to support self-regulation (…) until public regulations are made in the future. »

The new Korean government wants to regulate the flourishing cryptocurrency sector without stifling innovation and the economic growth of the sector.  A clever mix will have to be found to achieve balance.
The authorities of South Korea are launching a major regulatory project on cryptocurrencies

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…without hampering innovation or economic activity

But in the interests of balance and respect for economic activity, the President of the Commission made it clear that he did not want ” hinder technological development“. Hence the importance of emphasizing the education sector to train the population in these new investment methods.

On August 11, within the National Assembly, the inauguration ceremony of this Special Committee on digital assets. From words to deeds, the land of the morning calm has launched its small revolution regulatory, guided by the following leitmotif:

“Take a balanced approach to blockchain development, investor protection and market stability.”

Finally, to conclude, know that South Korea does not intend to stop in such a good way. The Cointelegraph media had access to an internal government working document. He would set at 2024 the creation of a comprehensive regulatory framework on crypto-assets. Entitled Digital Asset Basic Act, it should cover all sectors of the field such as exchanges, stablecoins or even the future central bank digital currency. This law is one of the 110 objectives that the new president set when he came to power.

Yoon Suk-yeol, elected last March, is not a professional politician. A 61-year-old former prosecutor, he has a reputation for being rather conservative and a man of action. The balance between economic development, taxation and the protection of users will not be easy to find for a country which still lives in the threatening shadow of its disturbing neighbor to the north.

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