South Korea is currently considering 17 cryptocurrency-related laws, and one of the most debated is the First IEO (Initial Exchange proposal) law. What does the regulation cover? Here are the details…
South Korea is considering 17 laws regarding cryptocurrency!
According to an article in local news outlet Sedaily, the South Korean government is keen to promote IEO legislation as it believes exchanges can better manage projects and improve transaction stability and ultimately provide a healthier market.
To discuss the direction of the institutionalization of cryptocurrencies, experts from academia and industry recently gathered at the ‘DCON 2023: Digital Asset Conference for Healthy Market Creation’ in Seoul. Jointly organized by the Korea Economic Law Association, Seoul National University Center for Economic Innovation, and Dunamu, the event discussed the commercial characteristics and market definition of the cryptocurrency market, reasonable regulatory research on the IEO, and the key contents and implications of the Token Securities Issuance (STO) distribution system.
Experts agree on creating regulations specific to cryptocurrencies.
During the conference, Professor Sang-Sang Lee from Seoul National University argued that institutionalization should not only reflect the market share of cryptocurrencies, but also consider whether exchanges are subject to competitive pressure from overseas.
Professor Byeong-Eon Kim from Konkuk University suggested that the IEO should be allowed on the grounds that the self-regulation of cryptocurrency exchanges based on the Digital Asset Exchange Council (DAXA) is working properly. Meanwhile, researcher Gap-Rae Kim suggested that the distribution system should adopt Blockchain technology while institutionalizing token securities.
Seok-Woo Lee, CEO of Dunamu, requested permission for the IEO legislation, stating that it has been discussed in depth and it is important to look at the cryptocurrency market from a broader perspective.
In general, experts agree that it is necessary to create laws and regulations that reflect the unique characteristics of cryptocurrencies and the market. With 17 bills currently waiting to be passed by the National Assembly, it is still unclear how South Korea will institutionalize the cryptocurrency and regulate the market going forward.
South Korea is more moderate towards cryptocurrencies than other countries
Legal regulations for cryptocurrencies differ around the world. For example, China and India passed laws to limit cryptocurrencies, Japan began monitoring crypto exchanges, and the US began taxing cryptocurrencies. In short, as cryptocurrencies are gaining more and more ground in the financial markets, the above-mentioned moderate outlook confirms that South Korea will take more supportive steps towards regulation.
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