South Korea’s national assembly and commercial banks have begun a discourse around the establishment of a ‘Virtual Asset Business Law’.
According to an initial report from PR Newswire the South Korean National Assembly held a seminar with representatives of major commercial banks to discuss the creation of a Virtual Asset Business Law.
The major takeaway from the discourse was that the establishment of these laws would be a catalyst in driving the establishment of a digital economy and development of the financial industry in the country.
The Korean National Assembly has begun working towards establishing the Virtual Asset Business Law, after an amendment to the Act on Reporting and Using Specified Financial Transaction Information for regulating money laundering of virtual assets.
The seminar was hosted by cryptocurrency lending platform Delio and lawmaker and National Policy Committee secretary Rep. Kim Byeong-wook. The event was sponsored by cryptocurrency lending service Delio.
Regulators eye blockchain to overhaul governance
Another key point raised during the seminar was the potential for blockchain technology and cryptocurrencies to overhaul existing government processes and innovation across a number of industries.
Democratic Party floor leader Kim Tae-nyeon said that the process of establishing a Virtual Asset Business Law will be part and parcel of plans to adopt future-forward technology.
“The Democratic Party of Korea and the government are rolling out the Korean New Deal, a national development plan that will transform Korea into a leading nation. Building an AI government utilizing blockchain is one of the main pillars of the Korean New Deal.”
According to National Policy Committee chairman Rep. Youn Kwan-su, the Korean National Assembly is strongly looking at how it can revise existing laws for digital finance innovation.
There is also a push to expedite laws focusing on cryptocurrencies which will include social discussions with the general public. The National Assembly wants to accurately define the industry and implement changes to existing legislation that will both promote the adoption of cryptocurrencies and blockchain technology while ensuring that investors are adequately protected from inherent risks associated with the space.
Lee Hae-bung, deputy director of the Financial Supervisory Service, highlighted the fact that a recent amendment to Act on Reporting and Using Specified Financial Transaction Information does not allow cryptocurrencies to enter the institutionalized financial system in Korea.
Lee reportedly said that Korea should establish a virtual asset law to set clear boundaries traditional financial assets and virtual assets like other countries have in recent years.
Commercial banks, crypto companies keen on clear legislation
The report also highlighted an overarching positive attitude from members of commercial banks towards the creation of legislations on virtual assets.
Jang Hyeon-gi, head of Shinhan Bank’s Digital R&D Center, said that local banks were interested in getting involved in the Decentralized Finance space by using a converged model incorporating blockchain technology and financial services.
He added that Shinhan Bank had already developed various cryptocurrency services including wallet custody and payment capabilities.
A number of cryptocurrency companies also attended the seminar and also backed the establishment of new laws for the space. Bithumb director Han Seong-hee emphasized the need for laws governing cryptocurrencies and the collaboration between cryptocurrency companies and commercial banks.
Delio CEO Jung Sang-ho echoed Han’s sentiments while stating that the Korean government has never recognized the cryptocurrency space as an official industry. He added that there needs to be urgency in establishing laws for the industry due to the growth of the space leading it to become widely used.