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- 1 The South Korean ruling party requested lawmakers to introduce the crypto bill DABA early.
- 2 The supposed involvement of a politician in crypto misconduct caused this preponement.
Crypto regulations are all the rage; every jurisdiction tries to devise a solution. South Korea’s ruling party People Power Party urged lawmakers on May 23 to introduce a bill regarding crypto assets in the country. Previously the bill was supposed to be introduced in the parliament in December 2023.
South Korea to Soon Introduce Crypto Regulation Bill
Citing the increased crypto adoption and events of scams related to digital assets in the country. PPP floor leader and Representative Yun Jae-ok urged the lawmakers to prepone the drafting of crypto laws. The demand came when a parliamentary subcommittee passed a revised version of the Public Service Ethics Act on May 22, 2023.
While speaking to the media, Jae-ok said that, considering the escalating public interest in the industry, especially regarding the upcoming laws. It would be unwise to wait more than six months for bill introduction and a few more months for it to become law.
Further, he argued that the Public Administration Committee must amend the bill to add specific clauses regarding crypto jurisdiction.
South Korean Prime Minister Han Deok-soo says that from now onward, property registrations shall include a declaration of crypto assets, similar to other valuable assets. He announced this in a press conference on May 17, 2023, emphasizing that declaration of holdings in digital assets will be mandatory for all senior public officials and lawmakers.
Currently, these officials are not legally required to declare their cryptocurrency holdings. It’s up to their personal choice to report the holdings.
Digital Asset Basic Act (DABA) is the proposed regulatory framework in the South Korean National Assembly. It would introduce 17 proposals like imposing a reserve requirement for crypto exchanges, ways to ensure fair and just trading, etc. The main aim behind the bill is to ensure the security of the country’s investors.
Three hundred members of the National Assembly are supposed to cast their votes on the bill on May 26, 2023.
The government was to discuss crypto regulations in six months, so what called for this preponement? In 2021 a serious crypto misconduct was committed by a very prominent personality. Kim Nam-Kuk, a representative of the National Assembly, previously associated with the Democratic Party, was found to be holding around 800,000 WeMix coins with 6 Billion Won ($4.5 Million).
The politician reportedly withdrew WeMix coins worth 250 Million Won in February 2022, interestingly against the declaration of just 4.4 Million Won. Kim has been accused of money laundering and exploiting the absence of crypto regulations in the country.
Cryptocurrency Regulations Scenario in Asia
Asia is rapidly emerging as a hub for cryptocurrency; many Asian countries are working towards a regulatory framework. China has banned the mining of cryptocurrency, citing energy consumption. North Korea intelligently used crypto to circumvent the sanctions from the West and fund its nuclear missile program.
Bhutan partnered with Ripple to develop its Central Bank Digital Currency (CBDC); Myanmar’s shadow government made Tether (USDT) a legal tender. Singapore, Thailand, and Hong Kong are emerging as the next hubs for the crypto industry with friendly regulations.
Overall, Asia is slowly emerging as a hub for the crypto industry; they are taking advantage of the unclear crypto regulatory environment in the United States.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
