3 months ago 2 min read

South Korea Moves Step Closer To Broad Crypto Legislation

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The South Korean parliament is starting a debate regarding comprehensive crypto rules. The emphasis is on investor protection as well as asset issuance and disclosure.

South Korea is taking additional efforts to control the cryptocurrency market, based to local media sites, with the country's parliament holding a heated debate on the Digital Asset Act. The conversation centered on investor protection, a topic that policymakers in the country have been debating for a long time. Another key topic of discussion was the creation and disclosure of virtual assets.

In accordance with the estimate, the South Korean cryptocurrency market would hit 55 trillion won ($42 billion) in the second half of 2021. In line with data, approximately 15 million people utilize cryptocurrency in total.

As a result, authorities believe that implementing investor protection and disclosure measures is necessary. The recent conversation is a significant step in that direction, and occurrences like the demise of the UST stablecoin have only served to emphasize the need of this.

The South Korean National Assembly Executive Committee is considering cryptocurrency legislation. This contains 11 virtual asset enactments, four amendments to the Electronic Financial Transactions Act, two revisions to specific financial information legislation, and one amendment to the Financial Services Commission.

In April, officials will consult with experts and hold public hearings. After being stalled in the early stages, the legislation will be free to move forward.

Cryptocurrency Regulation Is Likely This Year

It has long been known that South Korea places a high priority on cryptocurrency regulation. The country is home to a large number of bitcoin speculators. Authorities appear to be nearing the completion of a full regulatory framework.

Legislators recently issued standards for Security Token Offerings, which was a significant step forward for enterprises. Meanwhile, the Financial Services Commission announced that it would keep an eye on crypto whales. Also, officials are working on drafting a Metaverse Industry Promotion Law.

South Korea Advances In Crypto Controls

The regulatory spotlight in South Korea has been on both supporting certain areas of the market and establishing limitations on others. Web3 and the metaverse are important targets. The country has invested $1.6 million in a metaverse fund.

Crypto exchanges in the country have renewed their banking agreements in order to continue operations. In accordance to local media sites, illegal exchanges are still a concern, with traders using them for almost $4.3 billion in trades.

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