South Korea to reassess cryptographic monetary policy revision of existing regulatory framework

Senior South Korean government officials reportedly said at the Seoul economic conference that cryptographic monetary policy must now be reassessed as the cryptographic money market continues to evolve and mature. South Korea should build a platform as soon as possible that allows the encryption industry, government organizations and financial institutions to communicate with each other and work together to develop encryption-related regulatory guidelines, an official said.

Song Hee-kyong, who is currently co-chair of the fourth session of the Korea National Assembly's Industrial Forum, said: "The South Korean government has previously misunderstood virtual currencies, and they have been hoping to regulate cryptocurrencies in accordance with real monetary standards, so it is not surprising that there are problems." Yet while awaiting regulatory sandbox licensing, the encryption industry has not stagnated, and the industry as a whole is as if it had been put into a regulatory sandbox.

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Although Jung Byung-kook, chairman of the fourth-term industry Special Committee of the National Assembly of Korea, stressed that the Government should continue to be cautious about cryptocurrencies and adopt a conservative approach to the management of related technologies, South Korean lawmakers have confirmed their willingness to promote the development of the blockchain industry. Zheng Last September, the South Korean government banned the initial tokens issue (ICO), arguing that the practice of raising funds through the issuance of cryptographic tokens was no different from "gambling".

In January of this year, the South Korean government said it would not lift the ban because the country's Financial Services Commission had found that some ICO companies from overseas jurisdictions were still luring South Korean nationals to raise funds. In early March this year, the Korea's Supreme Prosecutor's Office (SPO) set up a special working group aimed at combating fraudulent and criminal activities related to cryptographic currencies. The Working Group will exercise the enforcement powers of the Supreme Prosecutor's Office of Korea to combat fraud, illegal money-laundering and other illegal activities in the areas of fintech and cryptographic money.