South Korean National Assembly debates with local crypto exchanges over regulations

South Korea’s representative body, the National Assembly, has held a crypto regulation debate arranged by major local cryptocurrency exchanges. This involved high profile government officials.

The meeting was arranged by the local market’s largest cryptocurrency exchanges including Upbit, Bithumb, Korbit, Gopax, and Coinone. This had executives of digital asset trading platforms and over-the-counter (OTC) exchanges.

The parties discussed the regulatory scope of the government on crypto with members of the Congress. The discussion also focused on Anti-Money Laundering (AML), customer protection and Know Your Customer (KYC) practices..

To emphasize transparency and efficiency of Crypto Exchanges, the operators of cryptocurrency exchanges have requested the government to follow up on the guideline it released that prohibits individuals from trading with unconfirmed bank accounts.

To establish the importance of crypto exchanges, the government has recognized the blockchain as one of the four core pillars of the Fourth Industrial Revolution and has worked with companies in the local market to bring in young talents into the ecosystem.

South Korea takes a bold move to engage in constructive argument with local crypto exchanges.

To firmly root the importance of practical regulatory frameworks, both cryptocurrency exchanges and government agencies agree that regulatory frameworks are necessary for the local market to continue to increase at a rapid rate but the policies need to be practical.

Lee Seok-wu, the president of Dunamu, a subsidiary of Kakao that operates Upbit, the country’s largest digital asset exchange, lead the panel participated by a former UBS executive, the chairman of KFTA, Gopax president and members of the FSC.

Cindicator, a platform that combines market analysis and machine learning for financial analytics, reported

“These projects and their eventual success are obviously a great indication of what crypto believers in the country feel the new technology could do in the future.”

Most of the policies that the government of South Korea has implemented are proving to be beneficial including its ban on anonymous cryptocurrency accounts. The government also stressed the requirement of a strong internal management system.

Communication between businesses, government agencies, officials and commissions is necessary especially in the process of facilitating the growth of an emerging technology,  also being a relatively new industry.

There is clearly no misty vision that such moves will definitely have a positive impact on the market. The only concern is that the government should not impose over-regulations and make it bureaucratic.