South Korean Lawmakers Urge The Government To Relieve The Harsh Crypto Regulation

A group of South Korean lawmakers has urged the government multiple times to relieve the pressure they placed on the crypto regulation and the regulation on the blockchain sector. Today’s blockchain news comes from the local newspaper in South Korea-The Korea Herald.

According to the reports, the groups of lawmakers believe that the administration of Moon Jae-in is putting up measures that are breaking down the growth of the blockchain industry. They claim that the financial regulator of the country, the Financial Services Commission has a harsh, conservative stance towards losing up the strings of regulation of the sector.

During the 2019 Deconomy Conference at the National Assembly, the Representative Min Byung-doo of the Democratic Party stated:

 “The government said it would lower regulation barriers, but cryptocurrency and blockchain are not subject (to such a move), which is a contradiction. It is now time to review previous regulations and ease them according to needs.”

Min aimed to raise the issue of deregulation with the president Moon since he is the head of the National Policy Committee, saying that he has already been consulting with officials from the presidential cabinet previously.

As DC Forecasts previously reported, the co-founder of Ethereum, Vitalik Buterin, urged the South Korean lawmakers to reduce the harsh regulation of the sector arguing that the government cannot implement blockchain technology and prohibit cryptocurrencies since both of them are correlated.

Song Hee-Kyong, a Liberty Party representative, proposed a revision of the current framework aiming to provide better support for the blockchain industry. Song also stated:

 “Although many customers rely on blockchain for a technological breakthrough, they suffer from lack of systemic support. The government’s vision of promoting the blockchain industry is nothing but talk.”

South Korea has banned initial coin offerings back in 2018 in September since the government believes that is the perfect tool for scams. The government also thought that ICOs have the ability to raise funds for tokens that are fraudulent and fake.

At the start of this year in January, the FSC decided to keep the ICO ban. Later in March, the Supreme Prosecutors’ Office of the country created a special task force to fight crypto crimes.

However, the government decided to triple its blockchain budged this year and has a lot of blockchain initiatives to pursue. The Liberty Korea Party pledged to promote blockchain as the most important technology of the fourth industrial revolution.