- The South Korean National Assembly has held its first debate centered on blockchain regulations
- This debate was put together by Upbit, Bithumb, Korbit, Gopax, and Coinone.
Progress is being made for the blockchain industry in South Korea this week as their National Assembly engaged in their first debate over Cryptocurrency regulations.
Besides members of the National Assembly, members of Congress also gathered for the talks which held on the 10th of December.
The meeting was put together by the management of blockchain firms such as Upbit, Bithumb, Korbit, Gopax, and Coinone.
A time of change
This debate isn’t the only recent change that has taken place in South Korea regarding the blockchain industry.
A few weeks ago, the government of South Korea and the Financial Services Commission (FSC) gave the green light for virtual accounts to be opened for blockchain businesses and crypto exchanges. This decision formally allowed banks to do business with those in the blockchain industry.
This law, however, isn’t without its hitches. There was another law put forward in January that prohibits individuals from trading with unconfirmed bank accounts. As a result, smaller exchanges and blockchain-based businesses have found it hard to obtain the banking services they need from large banks.
Those in the industry have called for a clarification of the law. Due to banking restrictions, smaller exchanges have found it hard to expand as they are unable to send large amounts abroad using their bank accounts.
While banks have been permitted to do business with blockchain businesses, the many restrictions currently in place at hindering a number of businesses, particularly the smaller ones.
There is also the issue of ICOs as the Korean government has warned against them and has our strict measures against them in place.
These measures, however, will be challenged by a blockchain startup Presto, which is filing a constitutional claim against the government.
Talking the talk
On the agenda for the debate were anti-money laundering and customer protection.
This was organized by Lee Seok-wu, CEO of Dunamu — a subsidiary of Kakao that operates Upbit and was attended by FSC member.
This is very significant as money laundering has been frequently cited as the reason for China’s hostility towards blockchain and Cryptocurrency.
Creating and enforcing regulatory frameworks around the industry are key to ensuring that blockchain businesses can thrive while still protecting the customer.