South Korea's National Assembly to Engage in First Crypto Debate: Possible Outcomes
December 10 2018 - 6:53AM
ADVFN Crypto NewsWire
On December 10, South Korea’s National Assembly along with
several members of the Congress are set to hold the country’s first
official debate around crypto involving high profile government
officials.
Expected Talking Points of the Debate
The meeting, arranged by the local market’s largest
cryptocurrency exchanges including Upbit, Bithumb, Korbit, Gopax, and Coinone, will have executives of digital asset trading
platforms and over-the-counter (OTC) exchanges discuss the
regulatory scope of the government on crypto with members of the
Congress.
Point 1: Transparency and Efficiency of Crypto Exchanges
Last month, the government of South Korea and the Financial Services Commission (FSC) officially allowed
banks to work with cryptocurrency exchanges and blockchain-related
businesses by providing virtual bank accounts.
However, the operators of cryptocurrency exchanges have
requested the government to follow up on the guideline it released
in January that prohibits individuals from trading with unconfirmed
bank accounts. Currently, despite the FSC’s green light, small
digital asset exchanges are struggling to obtain stable banking
services from large commercial banks.
Additionally, due to strict capital controls, many
cryptocurrency investors on local platforms are unable to send
large amounts abroad using their bank accounts, restricting the
ability of cryptocurrency exchanges to expand their operations into
overseas markets.
Point 2: Establishing the Importance of Crypto
Exchanges
Throughout the past 11 months, the government of South Korea has
aggressively encouraged the development of blockchain technology by
leading various initiatives and creating a vibrant ecosystem for
startups at a regional level.
The government 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.
According to Hankyoreh, a mainstream media outlet that is
assisting the country’s leading cryptocurrency exchanges in hosting
the debate, the government wants digital asset trading platforms to
take upon a vital role in providing liquidity to investors and
recognize the importance of a transparent and efficient
cryptocurrency exchange market for the long-term growth of the
blockchain space.
Point 3: Establishing 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, is set to lead a panel participated by a
former UBS executive, the chairman of KFTA, Gopax president, and
members of the FSC.
Most of the policies the government of South Korea has
implemented including its ban on anonymous cryptocurrency accounts
and requirement of a strong internal management system have allowed
investors in the market to build trust towards
cryptocurrency-related companies.
But, exchanges and startups in the blockchain space fear that
the government could over-regulate the space in the future, with
the G20’s call for stricter regulations in the
cryptocurrency market.
Will it Have a Positive Impact on the Market?
Communication between businesses and government agencies,
officials, and commissions is necessary especially in the process
of facilitating the growth of an emerging asset class and a
relatively new industry.
As the government continues to include cryptocurrency companies
in the loop in the process of implementing new policies, it could
allow the local market to be prepared and work with the regulators
to strengthen the infrastructure surrounding the asset class.
Source:
CCN
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