A legislator in South Korea has introduced a bill to promote the trading of cryptocurrency. This new bill would also promote cryptocurrency exchange developments. It also proposes the establishment of a new committee that would support and promote crypto operations.
Giving The Crypto Trading More Green Light
This new bill has been introduced by Kim Sun-dong, a lawmaker in South Korea. In addition to that, he is also a member of the Political Committee of the South Korean National Assembly. He made it clear that he had initiated a bill named Digital Asset Trading Promotion Act earlier last week. It includes a detailed plan for establishing a guideline that would be used in the market. The guideline will help in developing and promoting the cryptos and blockchain technologies. It will also look into measures that would curb hacking, as well as tax exemption and reduction.
Need For A New Law
Kim Sun-dong stressed on the need for a law dedicated to promote the operations of the virtual coin. He said this is the only way firms wouldn’t exit Korean market, with Bithumb as a good example. Cryptocurrency operations in South Korea accounted for a huge portion of the domestic stock market operations early this year. However, that didn’t prevent Bithumb from being sold to consortium based in Singapore as Kim observed. He also pointed out that Japan has finished legislative processes to make crypto operations institutionalized. The US, on the other hand, has also enabled the trading of crypto derivatives.
Details Of The New Crypto Bill
In the bill, this is how digital assets are defined. They are virtual content with apparent value like points, online money, virtual currencies, and game items. The operators dealing with the cryptos are also defined in this bill. Here they are referred to as digital asset trading companies. There are also various requirements for those who want to operate a crypto trading enterprise. They must have more than $2.66 million won in capital, computerized systems and sufficient manpower. Their physical equipment must also be approved by the FSC – Financial Services Commission.
Looking At The Interests Of The Exchanges
The bill also recognizes that the exchange might be hacked and its crypto clients suffer losses. In such a case, the new bill suggests that the exchange must assume the liability for the traders’ damage. The bill has also mentioned certain industry promotion. They include the promotion of research and development projects, as well as the establishment of a digital asset trading committee. It also includes tax reduction, professional training, and financial support.
The committee will still be responsible for a number of roles. This is if the publication on the Metro Seoul newspaper is anything to go by. The main role of the committee will be to resolve certain matters as asked by the Financial Services Committee. Some of these issues are setting policies and standards that are related to the cryptocurrency assets. The committee will also coordinate between the concerned administrative bodies.