Officials in South Korea are reportedly considering reviewing the country’s restrictive cryptocurrency regulations, in a move that could see the country re-evaluate its policies to ensure it supports the industry’s growth.
According to local news outlet ZDNet Korea, the announcement came during the Deconomy conference in Seoul ,where several top government officials noted the government’s policies may be reviewed to support the cryptocurrency industry.
Song Hee-kyong, the co-president of the 4th Industry Forum of the National Assembly, revealed that he believes that until now the South Korean government has been hindered the crypto industry’s growth. He stated (roughly translated):
The government has misunderstood the virtual currency and tried to meet the real currency standards, so there are various problems. The industry does not stand still while waiting for the regulatory sandbox authorization, so it is just like keeping it in the box.
Officials reportedly also noted the government has to act with caution in order to keep on protecting its citizens, as officials have a “responsibility and an obligation,” which forces them to “be conservative and require institutional devices.” This, according to Democratic Party Member Jung Byung-Kuk.
Another committee member suggested a regulatory sandbox could be formed in one of the country’s regions. Free Republican Party Member Won Hee-Ryong stated:
If we are concerned about regulation, we can operate a regulatory agency with the government in a limited area called Jeju Island. We will make a case study and try to create a foundation for the government to look at cryptocurrency.
South Korea is a country that banned initial coin offerings (ICOs) back in September of last year, over concerns related to fraud and resemblances between gambling and the issuance of tokens. The ban was reaffirmed earlier this year, when it was discovered some of its citizens still participated in token sales.
Last month, the country also launched a task force to fight cryptocurrency-related crimes, in response to an increasingly growing crime wave in the space. Despite these developments South Korean telecoms giant KT is reportedly looking to develop a local cryptocurrency.