South Korea will implement cryptocurrencies to the institutional system by 2024

While some countries try to curb the use of cryptocurrencies, others adhere to innovation and adopt measures to make the business with digital assets legal. This is the case of South Korea, which must implement cryptocurrencies in the institutional system by 2024

The decision is made by the new South Korean administration, more precisely by President Yoon Suk-yeol. He announced that he plans to establish a new regulatory framework for the institutionalization of cryptocurrencies.

South Korea’s Basic Digital Asset Law

According to local media, Yoon’s administration will develop a bill to create the “Basic Digital Asset Law” in 2022.

Yoon management confirmed the information. But he said the leaked draft and accessed by the local press is not a final copy of the project.

According to the leaked file, the project includes measures to protect investors. In addition, the text intends to stabilize transactions by regulating the issuance, listing and market activities of digital assets. This includes non-fungible tokens (NFTs).

Also, the plans include reviewing the development of the country’s central bank digital currency (CBDC).

Approval of digital assets

As local media reported, the plan to regulate digital assets is contained in the Presidential Acquisition Committee’s “National Task Implementation Plan”. The enactment of the Digital Assets Act was included in the 110 national tasks.

Currently, the enactment of the Basic Law on Digital Assets is pending in the National Assembly. The government’s idea is to create a bill that reflects the regulatory discussions of international organizations.

Thus, after the law is passed next year, regulations will be drawn up, such as enforcement ordinances, in 2024.

Security for investing in crypto

In addition to efforts to regulate crypto assets, an infrastructure will also be prepared for citizens to invest safely. The expectation is that institutions issuing cryptocurrency trading accounts will expand in the country.

Currently, it is possible to open an account with only four banks in South Korea: NH Nonghyup Bank (Bithumb, Coinone); Shinhan Bank (Korbit); K-Bank (Upbit) and Jeonbuk Bank (GoPax).

“We will strengthen the link between digital asset trading accounts and banks by expanding financial institutions that provide real-name verification services for virtual transactions,” said transition committee.

South Korean CBDC

Also, as mentioned, the new government decided to revise the revision of the Bank of Korea Law – the country’s central bank – to introduce a South Korean CBDC.

According to local portal News Kmib, a CBDC pilot is already underway. The project is expected to be completed in the first half of this year.

The new government will also prepare a policy to include NFTs as virtual assets if the Virtual Asset Industry Law, pending in the National Assembly, is enacted.

ICOs released

With the new bill, South Korea moves towards being more crypto-friendly.

As reported by Cryptheory, in the first week of May, South Korea announced the approval of ICOs – initial coin offerings. ICOs had been banned in the country in September 2017. The decision to release money raising through this means was also taken by President Yoon Suk-yeol.