A South Korean presidential committee is pushing for the government to establish a legal status allowing cryptocurrency to remain competitive on a global scale. Until now, the government's policies have been risk-based to stem speculation, which, in the committee's view, must change.
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The presidential committee pleads for the legalization of crypto
The South Korean Presidential Committee on the Fourth Industrial Revolution (PCFIR), placed directly under the authority of the President, made several recommendations regarding the country's regulation of cryptocurrency. PCFIR coordinates policies and reviews issues related to national master plans and strategies related to the "Fourth Industrial Revolution", which refers to a highly connected economy, supported by advances in areas such as blockchain, 5G, artificial intelligence, big data and the Internet of Things.
At the committee's global conference in Seoul on Oct. 25, PCFIR chairman Chang Byung-gyu said, "The government needs to establish the legal status of cryptographic assets," said several local media.
Stressing that the country's regulations and administrative procedures need to be improved to favor innovative startups, Chang said:
The legal status of cryptographic assets must be established as soon as possible and tax and accounting measures must be taken.
Call for changes under the new president of the FSC
The committee also urged the government to promote the innovation and institutionalization of cryptographic assets in order to remain competitive on a global scale. However, up to now, the government has opposed this idea because of concerns about possible side effects raised by the Ministry of Finance, the Ministry of Justice and the Ministry of Finance. 39 Information, said a sector stakeholder at MSN.
PCFIR criticized the government's current cryptography policies, aimed primarily at curbing speculation and reducing the kimchi premium, stating:
The government's policy of deterrence, which is essential to the speculative cryptocurrency fever, is reducing our global competitiveness in the blockchain and crypto-asset industries … We must set political goals to anticipate future opportunities.
Led by former President Choi Jong-ku, South Korea's leading financial regulator, the Financial Services Commission (FSC) implemented cryptocurrency emergency measures in December 2017 to reduce the kimchi premium. Several follow-up measures have been introduced in the coming months, including the real name system last January. However, only the country's four main cryptographic exchanges have been able to use the system so far.
Choi is no longer the president of the FSC. Eun Sung-soo succeeded him on 9 September. Prior to his appointment, Eun was president and chairman of the Korean Export and Import Bank and headed the Korea Investment Corporation, Korea's sovereign wealth fund, from January 2016 to September. 2017
After PCFIR announced its cryptographic recommendations, Lee Kong-joo, the president's advisor for Science and Technology, thanked the committee for its efforts, Bchain's publication said, citing the following: "I will examine actively to implement them (recommendations). possible. "
In addition, Hankyoreh reported on October 27 that the Korean Financial Intelligence Unit, under the supervision of the FSC, had announced that it would tighten cryptography regulations in line with the standards set by the Financial Action Task Force (FATF). . The announcement followed a recent plenary meeting of the FATF. The FATF issued guidelines on cryptographic assets and related service providers in June and is currently assessing the extent to which its member countries are implementing these guidelines.
What do you think of this South Korean presidential committee pushing for the legalization of cryptocurrency? Let us know in the comments section below.
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