Recently South Korea is doing their best to come up with a legislative framework to regulate domestic cryptosphere. South Korean National Assembly, which will start its work tomorrow, will have two weeks to review all proposed bills on the subject. It is still too early to say that some of the leaked drafts that appeared in the media will become full on laws, but at very least the discussions among high-ranking politicians is likely to lead to some form of a conclusion.
Representatives from the ruling party and main opposition parties are all actively trying to push their bills through, in order to clear up the legal framework for dealing with cryptocurrencies and rules to govern in-country crypto exchanges.
Also, according to the local media The Korea Times, a debate related to the security of the Korean crypto exchanges, which recently suffered a number of high profile cyber attacks, are set on July 19.
Representatives of the Korea Internet and Security Agency (KISA), the agency which had recently conducted inspections of country’s crypto exchanges will host the debates along with the representative from Liberty Party Korea (LPK). The party’s main goal will be to develop and provide a draft of the regulatory base for crypto markets which will prevent money laundering, hacking and the leaking of personal information.
WHY IS IT IMPORTANT?
1. South Korea is still trying to develop the solid regulatory base for cryptosphere in the country, as domestic crypto exchanges have become regular targets of cyber thieves.
2. Earlier in June Bithumb, one of the largest crypto exchanges in South Korea has lost $31M in crypto due to a cyber attack, while several days later another platform Bitkoex, managed to disclose personal data on their clientele over an encrypted working chat.
Recently, another set of drafts leaked to the media as country’s regulators intend to introduce a classification system to blockchain related projects and crypto exchanges. With this classification, which will have ten subcategories, South Korea will for the first time recognize crypto exchanges as an industry.