South Korea Discusses Cryptocurrency Law


At an event attended by banks and members of the South Korean National Assembly, a “digital asset law” that will improve the cryptocurrency ecosystem was discussed.

According to the statements made at the Digital Asset Trading Law National Assembly Seminar attended by some banks and national assembly members in South Korea; Participants discussed the creation of a digital asset law to help the long-term development of the cryptocurrency ecosystem in the country. The participants underlined that this law is a must for the development of the digital finance industry in Korea and to gain a stable profit from it.

Deputy Underlines the Necessity of the Law

Democratic Party deputy Kim Byeong-wook, who attended the seminar, talked about how improvements should be made for digital assets and how the system should work. In the new law, which Korea is discussing, new revisions and detailed academic research are planned for the development of digital currencies.

In his speech, Byeong-wook also said that in the post-coronavirus era of cryptocurrencies and digital finance, payment transactions based on cashless bases may be in demand.

Banks Are Also Looking forward to the Law

According to the information transferred from the seminar, commercial banks are also eagerly awaiting the legislation on digital assets. Jang Hyeon-gi, Head of the Digital R&D Center of Shinhan Bank, by presenting banks’ own financial solutions related to the cryptocurrency industry; Suggested that he could join the evolving DeFi world. Shinhan Bank has already announced that it has started to operate in this context. The bank has implemented blockchain-based applications in services such as payment and retention for its customers.

Jo Jin-seok, head of KB Kookmin Bank’s IT Innovation Center, also argued that digitization in finance is imminent. Jin-seok said that a large number of financial assets will follow the trend and begin digitizing; Accordingly, he stated that banks can also establish their own digital money platforms.

Digital Central Bank Money Studies in South Korea

With China’s national crypto currency accelerating its digital yuan, all countries have entered the race to issue their own digital currencies. One of these countries is South Korea, which is sitting on the table for cryptocurrency law these days. Although the Central Bank of South Korea says there is no need for digital money in the first stage; In April 2020, the digital central bank money (CBDC) announced that it accelerated the work.

The first phase of designing and inspecting the technology was completed within a few months. Now, according to the information published in the Korea Herald, Korea is preparing to test the blockchain-based CBDC in a virtual environment. CBDC will be distributed digitally and possible scenarios will be tested.


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