The Korean crypto market may have ease of business as the ruling Democratic Party has acknowledged the room for improvements and deregulations in the digital asset economy. The head of the ruling Democratic Party has promised to bring pro-crypto policies that would start “fostering” the industry instead of limiting it.
The Korean government had curbed the free operations of crypto platforms as it made it mandatory to register with local banks. It resulted in more than 50% of the crypto platforms closing their business due to strict regulations imposed by the government.
However, with elections coming soon, the Korean government has acknowledged the unpopularity of crypto regulations in the market. Democratic party’s nominee for the next elections has signaled a pro-crypto approach for virtual assets and crypto businesses. Also, he announced that the government would consider tokens for all inhabitants of South Korea.
The chairman of the Democratic Party, Song Young-Gil, stated that there’s a need for a blockchain department that can be set up in Busan. At present, the city is the only zone in Korea where blockchain regulations are not imposed. The chairman has also expressed his views on the digital currency stakes and how it would help South Korea globally.
Additionally, Song expressed his views on the present restrictive policy of virtual assets and crypto platforms.
While speaking at an event, Song commented on the issue. He said, “Busan was designated as a blockchain regulatory free zone in 2019, but the [intended] results have not been achieved because the government has viewed virtual asset exchanges in a negative light and suppressed virtual assets while nurturing blockchain technology.”
Song highlighted the interrelations between blockchain and crypto, stating the need to recognize “crypto assets” and “blockchain technology” as “two sides of the same coin.” Ministers from the present government had earlier stated that instead of decentralized protocols, private blockchain advances are preferred.
The BOK has announced its plans on launching digital won in the economy, which is presently in the pilot stage. The initial small-scale implementation is expected to prove the viability of a digital won by the end of six months.
The Deputy Governor of the Central Bank of Korea spoke to the media where he stated, “We are currently conducting a [digital KRW] pilot to test the technical implementation potential of its basic functions, such as online and offline payment, with the goal of completing this process in June next year.”
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