Regulating cryptocurrencies remain an ongoing debacle. Numerous countries attempt to do so through various efforts. South Korea, one of the more pro-cryptocurrency countries, still has no official regulation in this regard. Domestic lawyers are now pushing the government to provide clarity as soon as possible.
South Korea Needs Regulation
The future of cryptocurrency in South Korea looks rather bright. Its local exchanges generate a high amount of trading volume every day. This is despite some local platforms falling victim to hacks and theft throughout the years. The pro-crypto attitude among government officials is also well-known. Despite this positivism, there is still no cryptocurrency regulation in place.
That has been an ongoing problem for policymakers in the country. Lawyers are now asking the South Korean government to move things along in a swift manner. Protecting investors needs to be the number one priority. Furthermore, the lack of guidelines creates an uncertain future for the blockchain companies active in the country.
Hesitation regarding cryptocurrency regulation is never a positive aspect. Local officials have been criticized in the past for their laissez-faire approach toward blockchain. Developing a framework is not something that can be done without giving it careful thought. Cryptocurrencies are still considered a risk to the local economy, according to the Korean Bar Association.
The Study Round Continues
There is a good reason why South Korea still has no active cryptocurrency regulation. A study of the industry’s aspects has been ongoing for some time now. Until the thorough study is complete, regulatory measures will be proposed. The South Korean government maintains an open dialog with financial regulators in this regard.
Addressing the uncertainty regarding cryptocurrency and blockchain is not straightforward. Both industries have their advantages but also pose significant risks. Carefully evaluating both sides of the medallion is mandatory prior to making any decisions. For now, the government has not shared any timeline for introducing regulation pertaining to either industry.
Other countries around the world go through similar struggles. India has yet to make its position on both industries clear to the public. Officials in the United States are also looking for ways to bring more legitimacy to cryptocurrency. Now that Bitcoin has officially “matured’, such measures become all the more important.
Should interim crypto regulations be put in place while South Korea continues to study the industry? Let us know in the comments below.
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