The South Korean Bar Association has called on the government to introduce blockchain regulations.
As per a report from Reuters, the Korean Bar Association stated the government should ‘quickly’ develop blockchain laws in the nation to help build the tech industry and protect investors.
President of the Korean Bar Association, Mr. Kim Hyun was quoted as stating:
“We request the government to break away from negative thoughts and hesitation, and introduce bills to help develop the blockchain industry and prevent side effects involving digital currencies.”
Although, the government will supposedly take a decision only after studying the technology thoroughly. It is presently examining the situation, besides financial regulators in the nation, as per the Reuters report.
In July’18, the Financial Service Commission (FSC), the nation’s financial watchdog, set up a new department dedicated to blockchain and digital currencies. Named the Financial Innovation Bureau, it was created to focus on developing policy-making initiatives for the industry.
A senior executive at the FSC urged the government to pass a bill regulating domestic digital currency exchanges with urgency to counter lax security in the industry.
In the meantime, members of Korean political parties were reportedly expected to submit a number of bills focused on regulating digital currencies, the blockchain, and initial coin offerings. However, there has been no action on the part of the government.
As per The Korean Times, the lack of clear rules is further causing domestic crypto exchanges to increasingly set up in outside jurisdictions.
The news comes after a group of judges, lawmakers and industry experts formed a new group this summer called the blockchain law Society, intended to discuss legal issues surrounding blockchain technology.