Blockchain experts in South Korea to define government’s role in digital asset market

South Korea is known for its active involvement in the crypto industry. The country’s Digital Asset Industry Committee, which contains a number of leading blockchain experts from South Korea, has requested the development of a government committee focused on helping and advancing virtual asset businesses in the nation.

On Thursday, the professionals decided to come forward and discuss multiple ways in which Korea could become a leading virtual asset market and what the government should do to play an active role in the process. They strongly believe that blockchain technology and crypto would become necessary instruments for the Fourth Industrial Revolution.

A few days back, South Korea announced that it is investing $187 million to build a metaverse project for virtual industrial expansion, indicating the enthusiasm of regulators in the virtual asset market, despite their tight stance against virtual assets.

The blockchain specialists urged the government to assist the budding cryptocurrency industry, as well as other developing use cases such as decentralized finance (DeFi), decentralized autonomous organizations (DAO), non-fungible tokens (NFTs), and the metaverse, along with other emerging use cases.

Tough stance of South Korea

South Korea’s crypto regulations are considered to be among the most rigorous in the world, as evidenced by the fact that nearly 200 small to medium-sized cryptocurrency exchanges were put out of business after regulators mandated that crypto exchanges access real-name bank accounts for their users.

The Financial Conduct Authority, the country’s top financial regulator, has also prevented exchanges from promoting anonymous transactions and prohibited private wallets usage, among other restrictions. In the past, South Korean regulators have recommended a 20% tax on crypto profits; however, the proposal was put on hold due to a lack of clarity on cryptocurrency regulations. The government is also planning to bring its own CBDC.

South Korea’s crypto industry has prospered despite governmental obstacles, and it grew to be a $45.9 billion industry by the year 2021.