As Blockchain becomes more and more popular and more and more companies and countries use it in their every day lives, many are reaching out and requesting regulation to ensure safety and security. Something which is very prominent especially now. Countries such as Malta and the UK are already developing their own digital economy and new technology regulations to safeguard their business and operations. And it looks like South Korea is now trying to join in.
What’s This Association?
The main instigator of the need for regulation in South Korea at the moment is the Korea Blockchain Enterprise Promotion Association, which was only born mid July. It is clearly a brand new agency and one that looks after Blockchain technology in the country. It is built up of a plethora of knowledgeable individuals including ex politicians. The group aims to entice and support the government in implementing regulation in Blockchain technology in South Korea encouraging more jobs and improving the financial situation for small businesses.
What Has Happened?
The Korea Blockchain Enterprise Promotion Association has just demanded that the government steps up and regulates Blockchain to allow it to reach its full potential in the country. However, the request not only covers Blockchain, but also incorporates Initial Coin Offerings and Cryptocurrencies. As can be seen the association is extremely keen to push forward with the digital economy and latest technologies available but are also very aware of the implications of not having the correct legalities in place. There are been several examples where a lack of regulation has caused many problems.
Members of the group have seen other countries use Blockchain in many aspects of their day to day operations including logistics and healthcare and voting. They are therefore very keen to roll this out in South Korea. However it seems that the government is very concerned about the effects of the digital economy – as are many other countries – and are playing on the side of caution.
Bit Of Background
One of the main road blocks is the fact that South Korea has had a bumpy ride with the Cryptocurrency industry in the past and is trying to restrict negative impact as much as possible. Although Initial Coin Offerings are now allowed to take place in the country and Bitcoin is now seen as legal tender, there are still bans on certain members of the community from trading as well as a complete ban on any Cryptocurrency trading that is anonymous.
There has also been an announcement recently highlighting that after research, it looks like only 2% of the country’s population would actually use and trade in Cryptocurrencies. This is an extremely low figure and shows just how much South Korea is against the new digital economy at the moment.
So it looks as if there is still a long way to go with the South Koreans and their entry into Cryptocurrencies and Blockchain but with a powerful Korea Blockchain Enterprise Promotion Association behind the scenes working hard, who knows how quickly things will turn around.