S Korea’s National Assembly Discusses Crypto Regulation with Local Industry Majors

South Korean crypto exchanges and politicians gather together to debate on the regulatory scope for the local digital assets market.

South Korea’s National Assembly and several members of Congress have held the country’s first official cryptocurrency regulation debate, local news outlet ZdNet Korea reported on Monday.

Arranged by major South Korean crypto exchanges Bithumb, CobitCoin, Coinone, Upbit, Gopax, Coinplug, and Hanbitco, the meeting was attended by government officials, including Democratic Party member Kim Byung-wook and representatives for the Liberty Korea and Bareunmirae parties and the Financial Services Commission (FSC).

Lee Seok-wu, CEO of Upbit operator Dunamu, led a discussion that was attended by FSC members and the president of Gopax, among others. One panel reportedly focused on anti-money laundering (AML), client protection, and know your customer (KYC) practices. Lee is also set to lead a discussion with participation by a former UBS executive, the chairman of KFTA, the Gopax president, and members of the FSC.

Both industry representatives and government officials have reportedly agreed that practical regulatory frameworks are necessary for the local market to keep thriving.

In November, the government of South Korea and the FSC officially allowed banks to service cryptocurrency exchanges and blockchain-related businesses so long as the latter have adequate AML safeguards and apply KYC checks.

Meanwhile, a couple of MPs are now spearheading a campaign that seeks to push the government into reversing South Korea’s initial coin offering (ICO) ban, which has been in place since September 2017, and to introduce regulations designed to foster the blockchain industry.

South Korea has also been encouraging the development of blockchain. The government recognized the technology as one of the core pillars of its 5 trillion won ($4.4 billion) “Growth through Innovation” plan launched earlier this year.

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