South Korean authorities will re-evaluate the existing crypto rules with a view to support the growth and development of the crypto industry.
South Korean authorities have always had rather a strict approach towards digital assets and their influence on the national and global economy. Nevertheless, now there are high chances that something may change in this sphere as the country’s officials have taken a decision to review the existing regulatory frameworks regarding digital currencies.
Re-Evaluation of Crypto Rules
In the framework of the Deconomy conference that took place in Seoul, it was revealed by South Korean high officials that the country had to consider a possibility to introduce changes to its crypto policies.
According to them, this move should be done with a view to supporting the growth and development of the crypto sphere.
Moreover, the importance of communication between industry’s players with financial institutions and governmental bodies was clearly outlined. It was offered to create a special place where crypto market participants and influencers could gather to work on the development of common strategies and guidelines.
Speaking at the conference, co-president of the 4th Industry Forum of the National Assembly, Song Hee-kyong, stated:
“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.”
The majority of attendees supported this position and voiced their desire to support the blockchain industry in order to boost its growth.
Nevertheless, it was also stressed that it is crucial for the government to stay cautious and not to ignore the associated risks.
According to Jung Byung-kook, chairman of the 4th Industry Special Committee of the National Assembly, the government should follow a conservative approach when it comes to the management of new technologies.
Existing Policies
Let us also remind that last year the South Korean Financial Supervisory Service (FSS), the country’s financial regulator, took a decision to follow the example of China and ban initial coin offerings.
Such a decision to ban ICOs as a fundraising tool was explained by the fact that the government viewed it as a real financial risk and the issuance of tokens was even compared with a gamble.
This January, it was confirmed that the Financial Services Commission was not going to lift the ban as it had been discovered that though companies were using foreign jurisdictions to conduct ICOs, they still were raising funds from the residents of South Korea.
In March it was revealed that the new task force had been established by the South Korean Supreme Prosecutors’ Office (SPO). The main aim of the creation of the task force was to prevent and stop cryptocurrency-related fraud and crimes.
According to the conducted research, the number of fraud cases and crimes related to the cryptocurrency industry was growing and the new task force is responsible for the investigation of fraud and different types of wrongdoing in this sphere
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