South Korea passes one of many world’s first complete cryptocurrency legal guidelines • TechCrunch

The South Korean Nationwide Meeting passed new legislation today that may present a framework for the regulation and legalization of cryptocurrencies and crypto exchanges.

In a unanimous vote throughout a particular session of the legislature convened amidst the country’s worsening novel coronavirus situation, the representatives handed an modification to the nation’s monetary companies legal guidelines that might authorize Korea’s monetary regulators to successfully oversee the nascent business and develop guidelines round anti-money laundering amongst different processes.

South Korea has been on the forefront of the cryptocurrency growth and bust over the previous few years, and it’s one of many few international locations with wide-scale adoption of the expertise. Surveys on the peak of the crypto craze in 2017 confirmed that more than a third of the country’s workers were active investors in cryptocurrencies, like Bitcoin, Ethereum and different programs. The nation’s largest metropolis, Seoul, led a government initiative to introduce its own cryptocurrency — S-coin — that was designed to seize the zeitgeist of the frenzy.

Throughout that interval, South Korea’s authorities moved quickly to push new regulations and clamp down on the spread of blockchain, which triggered giant gyrations within the value of Bitcoin as buyers noticed how the nation’s buyers would react.

As we speak’s vote within the legislature just some years later is a comparatively fast turnaround for regulators, and reveals the growing acceptance of blockchain and, extra particularly, cryptocurrencies within the context of monetary companies each regionally and the world over. One of many nation’s largest expertise corporations, Kakao, has continued to invest in blockchain initiatives, and the native ecosystem stays comparatively strong in innovation within the sector.

The passage of the cryptocurrency laws is a victory for the Korean startup ecosystem, however different main questions stay in regards to the sector.

Among the many most heated matters as we speak is the destiny of Tada (타다), the indigenous ride-hailing startup that competes with the standard and controlled taxi business. For the reason that firm’s launch in late 2018, the corporate has confronted fixed threats of shut down by regulators, earlier than a reprieve a number of weeks in the past by the nation’s high constitutional courtroom permitted its operations.

But, in the identical particular session that noticed the cryptocurrency invoice cross, the Nationwide Meeting a day in the past approved in committee a invoice that might successfully ban Tada and mandate that it obtain an working license from the federal government. Count on additional motion on Tada within the weeks forward.

As for the cryptocurrency legislation, its passage and presumed signing by South Korean president Moon Jae-in begins a months-long rulemaking course of that will even present time for present startups and exchanges to transition into the legislation’s new regulatory equipment.

Korea’s parliamentary elections are developing in just some weeks (on April fifteenth), and, whereas the state of affairs across the novel coronavirus is taking a lion’s share of the native headlines, votes on tech measures are a method for representatives to place themselves on different salient points earlier than voters resolve.

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