South Korea Is Difficult To Establish Crypto Regulation In The Near Future
South Korea’s top financial watchdog said Monday that establishing regulations controlling the cryptocurrency business in the nation before a uniform worldwide regulatory framework would be challenging since cross-border enforcement would be a crucial driver of efficacy.
This comes as South Korea’s Financial Services Commission (FSC) has expressed alarm about the country’s ambitious new cryptocurrency law, which is presently being developed.
Park Joo-young of FSC’s Financial Innovation Division said:
“There may be a feeling of urgency due to regulatory void, but it is important to create a regulatory framework that has international consistency. Until international consistency is achieved, it will be difficult for Korea to create a regulatory system in solitary.”
Park’s remark on Monday, made at the National Assembly’s policy discussion on initial coin offers (ICO), calls into question South Korean President Yoon Suk-yeol to quickly institutionalize digital currencies. Yoon’s government is said to be working on legislation that would go into force in 2024 by next year.
The FSC representative, on the other hand, said that it is impossible to begin developing the framework since the bill has not yet been finished; he also mentioned that 14 pieces of legislation connected to cryptocurrencies are still pending in the National Assembly.
South Korea, where one out of every ten residents uses cryptocurrency, has witnessed an increase in the amount of conversation around cryptocurrency promotion since Yoon was elected president in May.
Yoon has promised to reintroduce ICOs, which were outlawed by the FSC in 2017, as well as a new crypto policy provisionally termed the digital asset fundamental act in support of crypto.
The measure, which follows Korea’s anti-money laundering limitations on crypto exchanges last year, will most likely be based on holding token issuers and crypto developers to higher standards in order to safeguard customers and avoid a repetition of the multibillion-dollar Terra-LUNA catastrophe.
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