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South Korea crypto regulations need tweaks to spur innovation

South Korea crypto regulations need tweaks to spur innovation

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TL;DR

Proposals to revise South Korea crypto regulations aim to encourage innovation, entrepreneurship, and new projects in the country’s crypto industry. Currently, the crypto scene in Asia is getting murkier, to say the least.

Recently, Bitmex Japan closed its crypto derivatives activities due to the country’s changed crypto laws. CoinPip of Singapore closed its crypto payment services owing to revised AML laws. Thus, the overall sentiment in the Asian crypto sector is one of uncertainty.

Min Kim of ICON Foundation, based in South Korea, said that the crypto regulations in the country had undergone changes in March. However, those revisions did not provide any clarity regarding crypto-related businesses, especially the finances part. This has actually created a lot of confusion in the industry.

South Korea crypto guidance needs urgent revisions

Kim adds that South Korea crypto regulations have been confusing since the very beginning. Just like other nations, the Asian country faced issues with the legalization of cryptocurrencies, especially with problems pertaining to KYC and anti-money laundering. Crypto taxes have also been a source of concern. Surprisingly, he adds that most crypto users favor taxes but with transparency.

The newly proposed revisions would certainly be a great help in making the South Korea crypto industry more transparent. Clear regulations have always helped the industry. As laws become clear, entities won’t have to move outside the country to set up shops in crypto-friendly nations.

Entrepreneurs and innovators must be prioritized

Entrepreneurs love clear-cut policies with a well laid out path for innovation. South Korea crypto regulations must strive for more efficiency in terms of investments to spur innovation in the industry. In terms of finance, projects must be able to access funding through transparent channels, which would help them secure their innovation.

Currently, South Korea crypto regulations are more in line with guidelines given by international bodies, including the FATF. There’s a need for developing local rules and policies that positively impact the country through internal channels.

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Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.

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