On Monday, December 10, South Korea’s National Assembly has hosted a debate addressing crypto regulations. The debate included major local cryptocurrency exchanges along with members of the Congress. This is going to be country’s first official debate around crypto involving high profile government officials, reportedly.
The exchanges present at the debate were massive firms like Upbit, Bithumb, Korbit, Gopax, and Coinone. The debate was also attended by politicians, such as Democratic Party member Kim Byung-Wook and representatives from the Liberty Korea and Bareunmirae parties, both having a considerable number of seats in the National Assembly.
The debate topics varied from transparency and efficiency of exchanges to the Importance of Crypto Exchanges. The debate also touched a subject like Importance of Practical Regulatory Frameworks.
Regarding transparency and efficiency of exchanges, crypto exchanges have requested the government to examine the guideline it released in January which prohibits individuals from trading with unconfirmed bank accounts.
Notably, the South Korean government and the Financial Services Commission (FSC) officially enabled banks to connect with cryptocurrency exchanges and blockchain-based businesses by offering virtual bank accounts. Despite this, small digital asset exchanges are finding it difficult to get stable banking services from large commercial banks.
South Korean government has maintained a welcoming attitude for crypto exchange platforms. Also, it has actively encouraged the development of blockchain technology by promoting various initiatives and framing a vibrant ecosystem for startups at a regional level.
As far as regulations are concerned, cryptocurrency exchanges and government agencies both concur on the idea that regulatory frameworks are crucial for the local market to grow at a rapid pace. With that, the policies will require to be practical.
The policies the government of South Korea has imposed such as a ban on anonymous cryptocurrency accounts and necessity of a robust internal management system have encouraged investors in the market to establish trust towards cryptocurrency-related companies.
Reportedly, Korean crypto exchanges overtook Maltese exchange platforms by average daily trade volume. Through this debate, the interaction between businesses and government agencies, officials, and commissions has been triggered.