South Korea’s foremost opposition occasion, the Liberty Korea Party (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 maintain a “People’s Report Meeting” on the National Assembly constructing in Seoul, on Sept. 22, the place the occasion will unveil its ultimate “2020 Economic Transformation” plan.
The LKP’s Kim Gwang-Lim — a sitting member of the National Assembly’s Strategy and Finance Committee — has revealed that the report was finalized following three months’ work by senior LKP members along with 90 civilian consultants from various fields.
This public-private session has culminated in a coverage to enhance Korea’s cryptocurrency trade as a part of a Fourth Industrial Revolution “Digital Finance Korea” initiative.
The coverage immediately 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 present into account in the United States and Japan, the place lawmakers are trying 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 Exchange, by providing 24/7 liquidity for various funding monetary merchandise comparable to safety tokens.
Opposition and authorities positions might finally align
Cointelegraph Korea studies that the KLP seeks to mitigate present regulatory uncertainty and act on the recommendation of private-sector consultants, who’ve argued that the cryptocurrency trade needs to 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 “government should flexibly discipline or prepare only minimum laws and systems according to existing laws such as capital market laws rather than legislate hastily.”
As regards home crypto exchanges, the KLP is advocating a coverage that might strengthen worldwide cooperation methods to mitigate dangers comparable to cash laundering.
Noting the recent announcement from Korea’s Financial Services Commission that it plans to convey crypto exchanges beneath its direct regulation, some observers have argued that opposition and authorities positions might in the end converge.