South Korea’s important opposition social gathering, the Liberty Korea Social gathering (LKP), is poised to unveil its coverage for cryptocurrencies and crypto exchanges.
As Cointelegraph Korea reported on Sept. 19, the LKP’s stance seems to be extra radical and pro-innovation than that of the present authorities, notably in its assist for the authorization of tokenized securities.
Authorizing safety token choices and asset tokenization
The LKP is scheduled to carry a “Folks’s Report Assembly” on the Nationwide Meeting constructing in Seoul, on Sept. 22, the place the social gathering will unveil its last “2020 Financial Transformation” plan.
The LKP’s Kim Gwang-Lim — a sitting member of the Nationwide Meeting’s Technique and Finance Committee — has revealed that the report was finalized following three months’ work by senior LKP members along with 90 civilian consultants from numerous fields.
This public-private session has culminated in a coverage to spice up Korea’s cryptocurrency business as a part of a Fourth Industrial Revolution “Digital Finance Korea” initiative.
The coverage straight opposes the incumbent authorities’s pro-blockchain, anti-cryptocurrency stance and places ahead the pro-innovation agenda of authorizing blockchain-based securities token issuance and asset tokenization.
As Cointelegraph Korea notes, such a stance aligns with positions at the moment into account in the US and Japan, the place lawmakers wish to speed up the institutionalization of the asset class by bringing it beneath an current securities regulatory framework.
The KLP’s proposal goes but additional in arguing that cryptocurrency exchanges might perform as a aggressive counterpart to the legacy Korea Alternate, by providing 24/7 liquidity for different funding monetary merchandise akin to safety tokens.
Opposition and authorities positions might ultimately align
Cointelegraph Korea stories that the KLP seeks to mitigate present regulatory uncertainty and act on the recommendation of private-sector consultants, who’ve argued that the cryptocurrency business must be legalized beneath the premise of investor safety.
Given the velocity of the brand new sector’s improvement, authorized consultants have in the meantime suggested that the “authorities ought to flexibly self-discipline or put together solely minimal legal guidelines and techniques in response to current legal guidelines akin to capital market legal guidelines fairly than legislate swiftly.”
As regards home crypto exchanges, the KLP is advocating a coverage that will strengthen worldwide cooperation techniques to mitigate dangers akin to cash laundering.
Noting the latest announcement from Korea’s Monetary Providers Fee that it plans to deliver crypto exchanges beneath its direct regulation, some observers have argued that opposition and authorities positions could finally converge.