A group of lawmakers belonging to different political parties has asked South Korea’s ruling party to ease the regulation of digital assets and blockchain, the local newspaper Korea Herald reported yesterday.
According to these lawmakers, the attitude of the current administration, headed by Moon Jae-in, leader of the Democratic Party, towards the crypto industry is hampering its development. The say that the Financial Services Commission, the country’s financial regulator, has adopted a very conservative attitude towards the industry.
For example, initial coin offerings (ICOs), which is the most popular mechanism used by crypto and blockchain startups to raise funds for the development of their projects, have been virtually prohibited since 2017.
Min Byung-doo of the Democratic Party reportedly stated in a speech last Friday during the 2019 Deconomy Conference held at the National Assembly:
“The government said it would lower regulation barriers, but cryptocurrency and blockchain are not subject (to such a move), which is a contradiction. It is now time to review previous regulations and ease them according to needs.”
Min, who is actually the chairman of the parliamentary National Policy Committee, has said he will propose the deregulation of the industry to president Moon.
WHY IT IS IMPORTANT
● Some members of the opposition have decided to make a move and propose the current government to change its attitude towards the regulation of the crypto industry since they believe that blockchain technology is essential in the era of the 4th industrial revolution.
● If the country keeps hampering the development of blockchain technology, it might eventually be unable to profit from this promising innovation.