The executive branch and the ruling party in South Korea have urged the cryptocurrency industry into what officials describe as voluntary regulatory measures, a Korean media report revealed. The call was issued during a consultative meeting dedicated to crypto assets.
Government Asks South Korean Crypto Sector for Regulatory Proposals
Representatives from the South Korean government and the ruling People’s Power Party met on Monday to discuss issues related to the crypto space. The consultations were held after last month’s collapse of the algorithmic stablecoin terrausd (UST) and its sister coin terra (LUNA) that affected many South Koreans.
Aiming to prevent the negative consequences of such accidents and better protect investors, Korean officials and lawmakers are now considering adopting a new law for blockchain-based platforms, Arirang revealed. They also urge the crypto industry to come up with its own regulations that include security mechanisms.
The English-language TV network’s report noted that South Korea’s crypto asset market stood at 55.2 trillion Korean won, or around $43 billion, at the time of writing. Additionally, 24 licensed cryptocurrency exchanges in the country process a daily average of 11.3 trillion won (over $8.7 billion) in transactions, reflecting the rapid growth of the market in recent years.
The South Korean authorities, however, believe that the current regulations are insufficient as a response to the rapid expansion. That is why the government and the main political force in South Korea are calling on the sector to propose “voluntary regulatory measures”, while many other nations investigate the impact of digital currencies on their financial systems and economic policies.
More than a dozen cryptocurrency-related bills are now pending in the Korean National Assembly, Arirang added, and the country’s Financial Services Commission plans to propose more laws designed to protect investors from the swings of the cryptocurrency market. cryptocurrencies.
At the same time, the Governor of the Financial Supervision Service, Lee Bok-hyun, has been quoted as emphasizing the need for a reasonable regulatory system. Just as it would allow the crypto asset market to have what he described as responsible growth.
Do you expect the Korean crypto industry to come up with its own regulations? Tell us in the comments section below.
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