It was argued by the Bank of Korea that the institution considered it inevitable to permit the crypto assets’ new issuance (ICO) within the country. It additionally stressed that the monetary authority, as well as the central bank of the country, require playing a significant role in overseeing the crypto assets (specifically the stablecoins).
BOK Deems It Inevitable to Permit ICOs of Native Cryptographic Assets
On the 29th of this month, a translated version of the European Union Crypto Asset Market Act (MiCA) in Korean was published by the Bank of Korea and the organization additionally noted the respective view. As per the BOK, the country has been prohibiting crypto assets’ ICOs to shield the consumers as well as the investors.
Nonetheless, no regulations have yet been implemented on the transfers via domestic exchanges, thus the local firms created a local association overseas for the issuance of the unique crypto tokens, and subsequently got them listed on Bithumb as well as the rest of the domestic exchanges. The Bank of Korea disclosed that after the enactment of the Framework Act on Digital Assets, it would be inevitable to organizationally permit the ICOs of the local cryptographic assets.
Another expected thing in this respect is the impact of enabling the preparation of a proactive mechanism, the bank revealed. While dealing with the EU, the organization added that regulations have been released by it to shield the investors and customers, while having a cautious strategy toward not to pose any hindrance to the blockchain in its development as well as innovation. As per MiCA, the extreme regulation should restrict the release of crypto assets from being minimized in the jurisdiction of EU.
The agency also mentioned that support should be provided for the endeavors related to innovation of the little businesses by the implementation of just the least regulations for consumer protection and so on in the case of the utility assets which are not likely to have a broad acceptance as the methods of payment.
A Balanced Strategy to Be Adopted by the BOK for Crypto Assets’ Promotion
It was highlighted by the Bank of Korea that a well-adjusted strategy is required to promote a vigorous market via the issuance of a regulatory system of crypto assets to advocate for the modernization of blockchain as well as the crypto assets while not restricting the relevant industries’ development because of extreme regulation.
According to the BOK, for Bitcoin and the rest of the cryptographic tokens for value storage and profit, it is obligatory to implement the regulations dealing with investment protection on the providers of these crypto assets, while offering security as well as transaction transparency within the market of crypto assets.
As diagnosed by the Bank of Korea, the stablecoins having a use case of payments would need to have delicate regulation in the EU’s case. The bank moved on to emphasize that it is inevitable – while implementing the Framework Act on Digital Assets – to guarantee the specification of the responsibilities of the monetary authority and the Bank of Korea for stablecoins, etc.