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A pro-crypto policy proposed by the Korean government

South Korea’s President Park Geun-Hye has promised to reverse course on crypto legislation, potentially easing the operation of crypto-related businesses. According to the party, “the time has arrived” for the government to stop regulating cryptocurrency and instead “promote” it.

President Park Geun-Hye has promised to reverse course on crypto legislation

The party is aiming to keep power in the general elections next year, and it has been made aware of the unpopularity of its current stance on cryptocurrency. The party’s candidate for the upcoming round of elections has signaled that he will take a far more favorable stance toward cryptocurrencies. The nominee has stated that he will consider distributing tokens to all inhabitants of South Korea.

According to Song Young-Gil, leader of the Democratic Party, the government needs to “create a blockchain department” in Busan, which is home to the country’s only blockchain regulatory-free zone. This, according to Young-Gil, will help the country become more competitive in the digital currency market.

Song also mentioned the need of understanding that “crypto-assets” and “blockchain technology” are “two sides of the same coin.” Ministers and senior regulators for the present president have previously stated that private blockchain advancements are preferable to working with decentralized protocols.

Song was critical of existing policies and the government’s handling of Busan’s status as a regulatory-free zone during a recent event in Busan.

“Busan was declared as a blockchain regulatory free zone in 2019, but the [anticipated] effects have not been attained since the government has viewed virtual asset exchanges negatively and suppressed virtual assets while developing blockchain technology,” Song explained.

Busan wanted to achieve some objectives, including the lifting of the blanket ban on initial coin offerings. The national government, on the other hand, limited the city to private blockchain-based solutions.

Meanwhile, Korea’s central bank will reveal its comprehensive digital won intentions next year. This will happen following the completion of a six-month pilot.

“We are presently undertaking a [digital KRW] pilot to assess the technological implementation potential of its core operations, such as online and offline payment,” the central Bank of Korea’s (BOK) Deputy Governor told Money Today, “intending to complete this process in June next year.”

Local and international exchanges have until September 24th to register as legitimate crypto trading platforms, according to the regulatory authorities. While roughly 20 exchanges have met the requirements for legal registration, the majority of local exchanges are still struggling.

As a result, industry observers predict that around 40 of South Korea’s 60 crypto operators will close down after the deadline passes.

This widespread closure of smaller exchanges may hasten the demise of kimchi currencies. These coins are alternative digital currencies that are exchanged in Korean won and are listed on local markets.

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Also read: Crypto Market Outlook and Investing Advice from Top Analysts

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