Thoughts on the Korean blockchain regulations
Intro
It’s been several years since blockchain has been widely spread throughout the world ever since Bitcoin was born. With many blockchain-based companies being founded, in what direction is the domestic blockchain regulations headed?
Conflicts with Existing Laws, Positive Regulations Barrier
The governor of Jeju, Won Hee-Ryong, recently announced his aspirations to make Jeju the hub of Korea’s blockchain, which gained massive interest in the industry. Furthermore, despite various departments and national institutions designing plans to support blockchain-related work, there have been no real results. Korea, the so-called IT powerhouse, has not only been unable to keep up its blockchain regulations with the rate of technological development, but the top-down policy formulation and the positive regulatory method are proving to be a stifling situation. Of course, there have been positive movements such as the bill to legalize ICOs being registered recently, but we must still wait and see how things turn out.
A Guideline is Needed, In Any Format
Zug, a small town in Switzerland, is not only known as the “Holy Land of Blockchain,” but has the best use case of how the state and its regulations should grow blockchain technology. The bottom-up policy with low corporate tax that establishes a direction for the corporations has attracted about 250 blockchain companies around the world, despite only having a total city population of 30,000. In July of 2016, the city of Zug was the first in the world to allow utility fees to be payable in cryptocurrency, got cryptocurrency ATM machines in its city, and even got universities to innovate and support blockchain, which benefited tremendous job creations. However, this does not mean Korea should necessarily follow the same format as Zug. In addition, it’s undeniable that because blockchain and cryptocurrency are closely-tied together, possibilities of various side effects are inevitable. Therefore, it’s hard for arguments like “ICOs must be allowed” or “regulations must be abolished” to gain strong grounds. What’s important is that in order for Korea to catch up with and follow the blockchain flow that the rest of the world has already been progressing in, a guideline of any format is necessary. We need to take a step back from the narrow-minded view of if it’ll simply work or not, and look at blockchain technology as an opportunity, not a risk.
*The articles on ITAM COLUMN may not reflect the ideas of ITAM Network, and the ownership and responsibility of the articles are given to the writers.
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