South Korea Considers 17 Cryptocurrency-Related Bills, Including IEO Legislation
South Korea is currently considering passing 17 cryptocurrency-related bills, with one of the most discussed being Initial Exchange Opening (IEO) legislation.
According to an article in Sedaily, the government is eager to promote IEO legislation as it believes that exchanges can better manage projects and improve transaction stability, ultimately leading to a healthier market.
To discuss the direction of cryptocurrency institutionalization, experts from academia and industry recently gathered at the ‘DCON 2023: Digital Asset Conference for Healthy Market Creation’ in Seoul. The event was co-hosted by the Korea Economic Law Association, Seoul National University’s Center for Economic Innovation, and Dunamu, and featured presentations on topics such as trading characteristics and market definition of the virtual asset market, reasonable regulatory research on IEO, and the key contents and implications of the Token Securities Issuance (STO) distribution system.
During the conference, Professor Sang-Sang Lee of Seoul National University argued that institutionalization should not only reflect cryptocurrency market share but also consider whether exchanges are exposed to competitive pressure from overseas. Professor Byeong-Eon Kim of Konkuk University suggested that IEO should be allowed on the premise that the self-regulation of cryptocurrency exchanges centered on the Digital Asset Exchange Council (DAXA) works properly. Meanwhile, researcher Gap-Rae Kim suggested that the distribution system needs to embrace blockchain technology when institutionalizing token securities.
The CEO of Dunamu, Seok-Woo Lee, urged for the permission of IEO legislation, stating that it had been discussed in depth and was important to look at the digital asset market from a wider perspective.
Overall, experts agree that it is necessary to establish laws and regulations that reflect the unique characteristics of cryptocurrencies and the digital asset market. With 17 bills currently waiting to be passed by the National Assembly, it remains to be seen how South Korea will institutionalize cryptocurrency and regulate the market going forward.
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