Korea to Establish New Organization to Create Legal Framework for Blockchain

The IT Times reported on Tuesday that a Korean blockchain expert group will set up an association to discuss the establishment of a legal framework to promote the social implementation of blockchain.

The new organization, called the “Blockchain Law Society,” will consist of lawmakers and legislators and will officially launch on the 24th. In order to introduce Distributed Ledger Technology (DLT) to society, they will discuss problems related to blockchains-related laws and take part in interdisciplinary discussions on various topics including economics, computer engineering, and business.

At the launch event on the 24th, the use of blockchain in accounting and taxation and the legal problems arising from the use of smart contracts, as well as the a regulatory sandbox for blockchain startups will be discussed.

In April, the Korean Blockchain Association (KBA) announced a self-regulatory framework for its cryptocurrency exchange members. It created rules on separately managing internal revenue and customer’s funds, maintaining a minimum net worth value of 2 billion won (about 200 million yen), as well as periodic audits and the issuance of financial reports.

In June, Korea’s Statistics Agency, Science and Technology Department, and Information and Communications Department revealed that they are drafting a bill to classify the blockchain industry.