South Korean top leaders call for a review of its crypto policies

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South Korea has been one of the market leaders when it comes to cryptos. And after a few years of strict regulation, the East Asian nation may soon review its crypto policies. During the ongoing Deconomy conference in Seoul, a number of government officials called for the government to review its policies to reflect recent developments in the crypto and blockchain industry.

The people of South Korea are now fairly informed on the dangers that come with investing in cryptos and blockchain. It’s therefore time to move on to the next phase of regulation which encourages growth and innovation, Byung Bong Min stated. Bong Min is the chairman of the National Assembly. As reported by local outlet ZDNetKorea, he said:

“The government has strongly regulated cryptocurrencies and after a year, I think the public is now well protected against their dangers and I think it’s time to review the regulatory policy.”

Despite blockchain tech growing aggressively over the past few years, it won’t benefit South Koreans if the government doesn’t create an enabling environment. This is according to Song Hee-kyong, co-president of the 4th Industry Forum of the National Assembly.

The South Korean government has assigned cryptos to a regulatory sandbox. This allows them to grow to certain limits, all while being carefully monitored. But according to Song, this has greatly limited the growth of cryptos in the country. This all stems from the government misunderstanding cryptos, he believes. While the regulatory sandbox was a great idea at first, the digital currencies industry has outgrown the sandboxes.

The governor of Jeju province, who was also a member of the panel, had a different suggestion altogether. Won Hee-ryong suggested that the government designate the island province as a crypto and blockchain zone. He said:

“If we are concerned about regulation, we can operate a regulatory agency with the government in a limited area called Jeju Island. We will make a case study and try to create a foundation for the government to look at cryptography positively.”

While South Korea has had massive success with blockchain and cryptos, it has also experienced a fair share of challenges. One of them has been hackers who’ve targeted the country’s high number of crypto wallets and exchanges. Just days ago, one of the country’s largest exchanges, Bithumb lost $19 million. According to a report late last year by the country’s police, seven crypto exchanges and 158 crypto wallets have been hacked in the past three years.