South Korean Government Hold First Crypto Debate

Dennis Wafula

December 11, 2018

According to local reports, the South Korean National Assembly held a crypto regulation debate, which was put together by local cryptocurrency exchanges. Both the government and crypto entrepreneurs debating ways to better the market.

Local crypto exchanges organise the debate

The debate was put together by seven local cryptocurrency exchanges including Gopax, Upbit, Bithumb, Coinone, Coinplug, Hanbitco and Korbit. The discussion brought together key players from the government and the crypto community. Among those who attended was Kim Byung-Wook, a Democratic Party member, representatives for the Liberty Korea and Bareunmirae parties and the financial watchdog, the Financial Services Commission (FSC).

Reportedly, the debate focused on the regulatory scope of the government on cryptocurrencies and need for Anti-Money Laundering (AML), customer protection and Know Your Customer (KYC) practices among other crypto activities.

Before the event, Kim Byung-Wook said,

“There is a debate on the blockchain, but since there is no discussion on the cryptographic exchange, it will be a place to establish measures to protect investors and joint tasks to operate the exchanges safely and efficiently.”

Importance of exchanges and need for regulations

The debate comes a month after the South Korean government and financial authorities officially allowed banks to offer services to crypto exchange and blockchain related businesses.  Despite authorities allowing ban and crypto transactions, small exchanges are still struggling to get banking services from large commercial banks. The debate sought to have the government and relevant official follow up on the matter.

In addition, the debate seeks to explain the importance of crypto exchanges and practical regulatory framework in the country. According to Hankyoreh, a media outlet in South Korea that has assisted the cryptocurrency exchanges in hosting the debate, the government wants digital trading platforms to take upon a critical role in the market. They should be in the front line 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.

Since the beginning of this year, South Korea has taken an active role in ensuring the growth of blockchain technology. With increased new business in the crypto space, both crypto exchanges and government agencies agree there is a need for regulatory frameworks.

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