The South Korean National Assembly today adopted new legislation that will provide a framework for the regulation and legalization of cryptocurrencies and cryptographic exchanges.
In a unanimous vote during an extraordinary session of the legislature convened amid the worsening situation of the new coronavirus in the country, representatives adopted an amendment to the country’s financial services laws which would authorize Korean financial regulators to effectively supervise the emerging industry and to develop rules regarding anti-money laundering among other processes.
South Korea has been at the forefront of the cryptocurrency boom and bust in recent years, and it is one of the few countries to have adopted the technology on a large scale. Surveys at the height of the cryptocurrency craze in 2017 showed that more than a third of workers in the country were active investors in cryptocurrencies, such as Bitcoin, Ethereum and other systems. Seoul, the country’s largest city, has spearheaded a government initiative to introduce its own cryptocurrency – S-coin – designed to capture the zeitgeist of the frenzy.
During this period, the South Korean government acted quickly to push new regulations and limit the spread of the blockchain, which caused large fluctuations in the price of Bitcoin as investors watched the reaction of investors in the country.
Today’s vote in Parliament a few years later is a relatively quick turnaround for regulators and shows the growing acceptance of blockchain and, more specifically, cryptocurrencies in the context of financial services both locally and in the world. One of the country’s largest tech companies, Kakao, has continued to invest in blockchain initiatives, and the local ecosystem remains relatively robust in terms of innovation in the sector.
Passing cryptocurrency legislation is a victory for the Korean startup ecosystem, but other major questions remain in the sector.
Today, the fate of Tada (타다), the indigenous public transport start-up that rivals the traditional and regulated taxi industry, is one of the hottest topics. Since the launch of the company in late 2018, the company has been constantly threatened with closure by regulators, before a reprieve a few weeks ago from the country’s highest constitutional court approved its operations.
However, during the same special session that saw the cryptocurrency bill go through, the National Assembly approved a bill in committee a day ago that would effectively ban Tada and impose a license on it. government operations. Expect new actions on Tada in the coming weeks.
Regarding the cryptocurrency law, its adoption and presumed signature by South Korean President Moon Jae-in initiates a month-long regulatory process that will also give startups and existing exchanges time to spend to the new statutory apparatus.
Legislative elections in Korea will be held in a few weeks (April 15) and, while the situation surrounding the new coronavirus is dominated by local headlines, votes on technical measures are a way for representatives to position on other important issues before voters decide.
The South Korean National Assembly today adopted new legislation that will provide a framework for the regulation and legalization of cryptocurrencies and cryptographic exchanges.
In a unanimous vote during an extraordinary session of the legislature convened amid the worsening situation of the new coronavirus in the country, representatives adopted an amendment to the country’s financial services laws which would authorize Korean financial regulators to effectively supervise the emerging industry and to develop rules regarding anti-money laundering among other processes.
South Korea has been at the forefront of the cryptocurrency boom and bust in recent years, and it is one of the few countries to have adopted the technology on a large scale. Surveys at the height of the cryptocurrency craze in 2017 showed that more than a third of workers in the country were active investors in cryptocurrencies, such as Bitcoin, Ethereum and other systems. Seoul, the country’s largest city, has spearheaded a government initiative to introduce its own cryptocurrency – S-coin – designed to capture the zeitgeist of the frenzy.
During this period, the South Korean government acted quickly to push new regulations and limit the spread of the blockchain, which caused large fluctuations in the price of Bitcoin as investors watched the reaction of investors in the country.
Today’s vote in Parliament a few years later is a relatively quick turnaround for regulators and shows the growing acceptance of blockchain and, more specifically, cryptocurrencies in the context of financial services both locally and in the world. One of the country’s largest tech companies, Kakao, has continued to invest in blockchain initiatives, and the local ecosystem remains relatively robust in terms of innovation in the sector.
Passing cryptocurrency legislation is a victory for the Korean startup ecosystem, but other major questions remain in the sector.
Today, the fate of Tada (타다), the indigenous public transport start-up that rivals the traditional and regulated taxi industry, is one of the hottest topics. Since the launch of the company in late 2018, the company has been constantly threatened with closure by regulators, before a reprieve a few weeks ago from the country’s highest constitutional court approved its operations.
However, during the same special session that saw the cryptocurrency bill go through, the National Assembly approved a bill in committee a day ago that would effectively ban Tada and impose a license on it. government operations. Expect new actions on Tada in the coming weeks.
Regarding the cryptocurrency law, its adoption and presumed signature by South Korean President Moon Jae-in initiates a month-long regulatory process that will also give startups and existing exchanges time to spend to the new statutory apparatus.
Legislative elections in Korea will be held in a few weeks (April 15) and, while the situation surrounding the new coronavirus is dominated by local headlines, votes on technical measures are a way for representatives to position on other important issues before voters decide.