Lately, the blockchain regulatory sector has been a little quiet. Hopefully, it’s a good sign that the blockchain is being handled the right way by regulators. However, there has been some interesting movement in South Korea in regards to crypto regulations. In addition, with the fast approaching G20 summit, the global blockchain regulation sector is sure to get a lot messier.
Recently, numerous South Korean Lawmakers and financial regulators have reportedly called for what is known as “deregulation of the blockchain industry”. They took their plea to heads of the government in Seoul, the Capital.
As per numerous reports, the pleas are a call for action directed towards the South Korean government. More specifically, the lawmakers are asking the government to ease regulation of cryptocurrencies and blockchain technology.
Furthermore, the lawmakers have shown concerns in regards to President Moon Jae-in’s administration, claiming that it is slowing down the growth of the blockchain in South Korea through the current laws being enacted. Additionally, they further claim that some of the countries Financial regulators have taken a rather surprising conservative attitude and stance in regards to easing laws in the blockchain industry.
Although the ruling democratic party has been working on comprehensive and steady deregulation guidelines, opposition leaders, the Liberty Korea Party has continuously voiced discontentment towards Moon Jae-in and his administration, describing them as being “ heavy-handed over Technological Innovations”
Sharing similar concern is Rep. Min Byung-doo of the Democratic Party, as he explained during the 2019 Deconomy Conference, which took place this past weekend in South Korea’s National Assembly:
The government said it would lower regulation barriers, but cryptocurrency and blockchain are not subject (to such a move), which is a contradiction. It is now time to review previous regulations and ease them according to needs.
Additionally, He Further assured that he will soon discuss all matters concerning blockchain deregulation with President Moon, as he has recently met with senior presidential aides concerning the issue.
As we know that South Korea is a leader in the blockchain sector, so it was only fair for blockchain poster-boy and Ethereum’s co-founder Vitalik Buterin to make an appearance at the Conference. He came as a reinforcing voice, supporting the Lawmakers’ cries for deregulation. According to reports, Buterin further explained that it is nearly impossible for a government to adopt blockchain technology while prohibiting crypto assets, for him, the two are inseparable.
This is an obvious reference to South Korea current law not recognizing crypto as a legal tender for monetary transactions and the tight control over crypto exchanges. Additionally, South Korea banned Initial Coin Offerings or ICO’s back in 2018, describing the activity as a gamble.
Moreover, Last week, An opposition representative proposed a bill designed to aid in the development of South Korea’s blockchain industry. Rep. Song Hee-gyoung through proposal reportedly aims to protect intellectual rights and provide tax benefits on cryptocurrencies.
He believes That:
Although many customers rely on blockchain for a technological breakthrough, they suffer from lack of systemic support. He added, The government’s vision of promoting the blockchain industry is nothing but talk.
Despite recent debates and concerns, the South Korean government has been an active participant in the growth of blockchain from the beginning. In addition, the Korean government is planning to triple its blockchain budget in 2019 compared to the previous years.
To keep an eye on:
The much anticipated G20 summit is close by. Set to take place in Fukuoka, Japan on June 8 and 9 of this year. It will assemble some the world powerful leaders, and of Course blockchain regulations is on the menu.
As per numerous reports, the G20 central bank governors and finance ministers will be in attendance. Additionally, summit members will focus on the subject of international cryptocurrency Anti-Money Laundering (AML) regulations and framework.
This initiative is an effort to combat money laundering and terrorist financing through the means of digital assets. During the G20 many countries also hope to reach a consensus in regards to anti-anonymity and transparency during crypto transactions in the blockchain.
As always expected, the G20 is an important meeting in regards to world affairs. This year, with the full inclusion of blockchain and cryptocurrencies as topics, let’s hope that something good and beneficial to the global blockchain community comes out of it.