South Korea Introduces Crypto Bill to Avoid Companies From Leaving

South Korea has recently introduced a bill to push crypto trading in the country. The bill proposes the formation of a committee which would be responsible for the promotion and support of crypto-related issues in the country.

Kim Sun-dong, the lawmaker behind the bill announced last week about the developments in the Digital Asset Trading Promotion Act. He also emphasized on the need of such a bill citing the example of Bithumb, which was sold to a Singapore based firm, last month. Mr. Kim a member of National Assembly’s Committee, in his statement to the press, said,

‘The Digital Asset, Trading Promotion Act,’ includes a comprehensive plan for establishing a guideline for promoting the development of virtual currency exchanges and blockchain technology, tax reduction and exemption, measures against hacking damage, and prevention of market disturbances.”

The Bithumb used to be one of the biggest Exchanges in the country, but the absence of any support from the government forced its closure. Korean lawmakers after looking at the potential in Blockchain based digital currency proposed the plan.

Mr. Kim noted that Korea has always been the hub for techno geeks and digitalization. The domestic trade market even had a primary volume of crypto trades, but in the absence of a proper legislature, it was always headed for doom.

Mr. Kim also cited the example of Japan and the United States who have made significant progress in forming a set of rules and regulations for the digital currencies of tomorrow.

The Crypto Bill

The Bill defines various regulations and guidelines, which every crypto exchange and the firm must adhere by, to be operational. One of the rules states, if the exchange gets hacked, the losses incurred by the users must be compensated, and the Exchange should take the liability for the damage.

For the promotion of crypto in the country, the various guidelines include the establishment of a digital asset trading committee, various research and development projects, professional training from the experts and tax reduction. The said committee will be responsible for resolving issues sent by FSC committee.

Mr. Kim says,

“The government is focusing only on the risk of virtual currency and concentrating only on the crackdown of illegal activities … In order to lead the global trend of blockchain technology development, it is necessary to prepare laws and regulations as soon as possible.”

Final thoughts

Korea (south) has always been the front runner when it comes to acceptance of new technologies and promoting it. The bill for regulating crypto trade and making it an officially recognized entity by the government would boost the Crypto exchanges and crypto enthusiast the same.