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BlockchainBusiness & Finance

Korean Blockchain Enterprise Demands Crypto Adoption

Blockchain Enterprise Promotion Association calls for the government to adopt crypto technology instead of missing on the immense potential this currency holds by focusing on temporary negative issues and investing in controlling and coercing its growth.

The association now calls on the government to come up with a legal framework that would encourage the development of the blockchain industry.

This association came into being quite recently, on July 17th, with the aim to build a communication bridge between relevant enterprises and the government, strengthen the government support and assistance to relevant enterprises so as to promote the globalization of Korean blockchain enterprises. Unlike other existing associations, Korea Blockchain Enterprise Promotion Association is composed of politicians and emerging blockchain companies.

The association came forward this Tuesday with the demand for government to set precedent and regulate cryptocurrency, reported a local news outlet, Korea Joongang Daily. Yoo Joon-sang, president of the Korea Blockchain Enterprise Promotion Association, pointed out to efforts of other countries to merge this technology for their benefits while hammering the government for doing the opposite – coercion against crypto usage.

Countries around the world are applying blockchain technology to all aspects of society including health care, retail and logistics but instead of welcoming the people’s fervor for the technology, the government is focused on controlling it to address negative short-term side effects. This is essentially kicking away the economic opportunities that lie in front of us.

South Korea continues its love hate relationship with cryptocurrency, as the country has banned anonymous crypto trading and forbid minors and government officials from trading in the past, but more recently has lifted the ban on Initial Coin Offerings (ICO) and legalized Bitcoin (BTC) as a remittance method.

On March 1, according to Maeil Business, the Ministry of Personnel Management issued a document entitled “Virtual Currency Holdings and Transaction-Related Information for Civil Servants” stating that officials who are found to be involved in cryptocurrency trading are “in violation of the prohibition of forbearance obligations under the civil servants’ law” and are subject to disciplinary actions, especially if the banned activities occur during work hours.

Although the virtual currency itself was not judged to be illegal, it was pointed out that it infringed on the constitutional fundamental rights of public officials while imposing a ban on the entire public societies.

More recently, on May 29th, a South Korean National Assembly committee dedicated to studying the so-called ‘Fourth Industrial Revolution’ said it would seek to enhance the legal basis of cryptocurrency in the country, part of which would be reversing the ICO ban which the government enacted in September 2017.

The special committee on the fourth industrial revolution said, “We need to form a task force including private experts in order to improve transparency of cryptocurrency trading and establish a healthy trade order. The administration also needs to consider setting up a new committee and building governance systems at its level in a bid to systematically make blockchain policy and efficiently provide industrial support. We will also establish a legal basis for cryptocurrency trading, including permission of ICOs, through the National Assembly Standing Committee.”, reported Business Korea.

With the general mistrust of Korean government on cryptocurrency under siege from crypto associations, hopes for legitimizing cryptocurrency are on a rise, building pressure on government to hasten the regulatory process.

Sarim Mehmood

An electrical engineer to be. Sarim is a blockchain & crypto enthusiast and an early investor in ETH and Ethereum based projects. Contact the editor at editor.opinions@blockpublisher.com

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