According to a Korean media report, the South Korean executive and ruling party have called for the adoption of voluntary regulations. The announcement was made during a meeting dedicated to cryptocurrency assets.
South Korean Crypto Sector asks Government for regulatory proposals
On Monday, representatives of both the South Korean government (and the People Power Party) met to discuss crypto issues. The consultations were held in the aftermath of last month’s collapse of the terrausd (UST) algorithmic stablecoin and its sister coin terra (LUNA) that affected many South Koreans.
Arirang announced that Korean legislators and officials have begun to consider the adoption of a new law regarding blockchain-based platforms in order to avoid the potential negative effects of crashes. The lawmakers also urged the cryptocurrency industry to develop its own safety regulations.
The report by the English-language TV network noted that South Korea’s crypto assets market stood at 55.2 trillion Korean won, or around $43 billion, at the time of writing. Additionally, the 24 authorized cryptocurrency exchanges process an average of 11.3 billion won per day (over $8.7 million) of transactions each day, which is indicative of the fast growth of this market over the past several years.
However, South Korean officials believe that the current regulations do not adequately address this rapid expansion. That’s why the government and South Korea’s leading political force are calling on the sector to propose “voluntary regulatory measures” while many other nations are looking into the impact of digital currencies on their financial systems and economic policies.
More than a dozen crypto-related bills are now pending in the Korean National Assembly, Arirang added, and the country’s Financial Services Commission is planning to propose more legislation tailored to protect investors from the swings of the crypto market.
Lee Bokhyun (Governor of the Financial Supervisory Service) was quoted as stating that he believes a sensible regulation system is necessary. This would enable the crypto market to experience responsible growth, he said.
What do you think the Korean crypto market will propose? Leave your comments below.
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