South Korean Legislators To Propose New Rules For Cryptocurrency And Blockchain

News, Regulation | July 12, 2018 By:

South Korean lawmakers are reportedly set to submit draft bills focused on regulating cryptocurrencies, initial coin offerings (ICO) and blockchain technology.

According to a report from the Korea Times, legislators from different political parties will introduce the drafts at an extraordinary session of the National Assembly, which will take place from July 13 to 26. The lawmakers who are expected to submit bills are Representative Park Yong-jin of the ruling Democratic Party of Korea, Representative Chung Tae-ok of the main opposition Liberty Party Korea (LPK) and Representative Choung Byoung-gug of the minor opposition Bareun Mirae Party.

The three members of the South Korean assembly are reportedly planning to present their respective bills on the legal status of cryptocurrency and requirements for crypto exchanges in order to prevent money laundering, cybercrimes and personal data leaks.

Rep. Song Hee-kyung, member of the LPK, is also holding an event later this month that could have implications for the country’s domestic exchange ecosystem. Song will co-host a policy debate on the security of domestic crypto exchanges with Korea Internet and Security Agency (KISA) on July 19. KISA, a government organization that supervises internet and cybersecurity, has been conducting a security inspection of crypto exchanges since July 2.

Earlier this month, the South Korean government announced that it was drafting major new industry classification standards for the country’s blockchain industry. The classification system is expected to include categories such as blockchain systems, decentralized applications (DApps) development, and cryptocurrency exchanges and transactions, among others.