South Korea unlikely to push crypto regulations ahead of US, says authority

South Korea unlikely to push crypto regulations ahead of US, says authority

It comes as South Korea’s Financial Services Commission (FSC) recently expressed concern about the country’s ambitious new legislation on cryptocurrencies currently being developed.

“There may be a sense of urgency because of [concerns over] Park Ju-young of the Financial Innovation Division of the FSC said, according to local media.

Until international consistency is achieved, it will be difficult for him [Korea] Park said.

At least when it comes to central bank digital currencies (CBDCs), international cooperation is a key determining factor in reaching the full potential of such projects, a report by the Bank for International Settlements (BIS) said in July. The report said that central banks that are not actively exploring digital central bank currencies should consider cross-border functionality at the early design stage.

See related article: South Korea’s Comprehensive Cryptographic Law Is Coming – What We Know So Far

Park’s comment on Monday, released during the National Assembly’s policy discussion on initial coin offerings (ICO), challenges South Korean President Yoon Suk Yeol’s initiative to urgently institutionalize digital currencies.

Yoon Hee’s management It said It plans to put the legislation in place by next year, set to take effect in 2024.

However, the representative of the FSC explained that it is difficult to start building the framework because the bill has not been finalized; Noting that there are 14 bills related to cryptocurrency still pending in the National Assembly.

“The MiCA (Markets in Crypto Assets) is not yet finalized and is expected to take a year and a half to two years to come into effect, and the US does not have the relevant regulations in place,” Park said.

Park also explained that without international consistency, many issues such as regulatory arbitration by crypto companies that use loopholes in the laws of a particular country to operate there could emerge, ultimately harming the interests of investors not only in South Korea but globally.

See related article: Crypto bull wins the presidency: What does that mean for South Korea

South Korea, where one in ten of its citizens are crypto users, has seen a greater amount of discussion about promoting cryptocurrencies since the country elected Yoon as president in May.

Yoon has pledged to reinstate ICOs, which were banned by the FSC in 2017, and new regulations on cryptography initially titled The Basic Act of Digital Assets to Support Crypto.

The law, which follows Korea’s anti-money laundering restrictions on crypto exchanges last year, is likely to be developed around tougher standards for token issuers and crypto developers to protect users and prevent a repeat of the multi-billion dollar Terra-LUNA disaster.

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