The Korea Bar Association is calling on the government to put in place laws guiding digital currency and investor protection.
Bar Association Calls for Cryptocurrency Laws
According to Reuters, South Korean lawyers called on the government to create laws that would enable the development of the digital currency industry and improve investors’ protection in the country.
At a news conference held at the South Korean parliament, President of the Korean Bar association, Kim Hyun, said:
We urge the government to break away from negative perceptions and hesitation and draw up bills to help develop the blockchain industry and prevent side effects involving cryptocurrencies.
The South Korean government has, however, declared that its final stance on virtual currency regulation after the completion of its study. At the moment, financial regulators and the government are carrying out comprehensive research on cryptocurrency and blockchain technology.
It is, nonetheless, surprising to find the Bar Association, a body for all local lawyers in South Korea, openly campaigning for a particular sector. The Asian country is home to popular digital currency exchange platform, BitHumb. The country, however, is quite slow when it comes to cryptocurrency regulations.
Japan, its Asian counterpart, has, on the other hand, taken steps to create a favorable climate for the cryptocurrency industry. With the two biggest hacks happening to Japanese exchanges, the country tightened its regulatory noose on digital currency exchanges.
The Japan FSA went further to grant self-regulatory status to the country’s virtual currency industry. This decision gave the industry the right to monitor the activities of digital currency exchanges in the country. The South Korean government and regulatory bodies can take a cue from Japan to foster better cryptocurrency relations in the country.
Cryptocurrency Regulations in South Korea
The South Korean government and lawmakers have blown hot and cold when it comes to virtual currency regulations in the country. At the moment, there is a ban on initial coin offerings (ICO) and anonymous digital currency trading.
Earlier in the year, the country stated its willingness to create a favorable environment for cryptocurrency exchanges and decentralized technology. The government initially announced plans to relax virtual currency trading in the country.
Furthermore, the government announced that it would most likely publish its official stance on virtual currency ICOs in November. Although, various members of the National Assembly show divided opinion regarding the ICO ban.
Ethereum World News also reported that South Korean banks gave cryptocurrency traders not willing to convert to the real-name system, a tough time. In Q1 2018, the country was considering adopting the BitLicence system for virtual currency regulation similar to New York’s BitLicence.
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