The Korean Bar Association have required their legislation to establish the necessary legal framework that will protect the interests of the cryptocurrency investors in the cryptocurrency and the blockchain sector.

On Thursday, 07 Nov, 2018 at the Korean Parliament, the Korean Bar Association publicly required the government to come up with the required laws that will protect the interest of the investors while at the same time encouraging the evolution of the domestic blockchain industry.

The Reuters reported the statements made by Kim Hyun, the Bar Association President as stating:

“We urge the Korean government to break away from the many negative perceptions and hesitation about regulatory bills, and to draw up bills that will help develop the blockchain industry to eventually prevent the side effects that will involve the cryptocurrencies.”

Considering the possibilities of serious fallouts there continues to be uncertainties around permitting initial coin offerings. It is not likely in the near now for a bill to be drafted in a way to legalize ICOs considering the current attitude and stance of the government. Of note, this is despite the 300-member national legislature having made their official proposal requesting to lift the ban.

The lobbying effort that has been made by the Bar Association is pretty remarkable.  This has come at a point in time when the government has excluded the domestic blockchain industry and the crypto exchanges as from the certified venture firms that are recognized in the country.

During the parliamentary meeting that was held in October, Financial Services Commission (FSC) Chairman stated that regulators are holding on to their idea of outlawing the ICOs in Korea.  This disposition by the government is despite the regular efforts by the South Korean Lawmakers who are working to overturn the ban.  They required that ICOs be permitted with clear guidelines so that it can be used as an improved financing method for the startups and companies.

Cryptocurrency trading at a domestic level is a very active market in South Korea. When compared to the whole of the world, it is the hub that can be compared to Bithumb and Upbit which are both in the top 10 of exchanges in terms of trading volume.

In the past week, Choi Jong-Ku, FSC commissioner reinstated on the requirement of the cryptocurrency exchanges in complying with the know your customer (KYC) and the regular anti-money laundering (AML) norms.  He stated that the exchanges that follow these rules will not face hurdles with respect to gaining access to banking services in the country.

Entrepreneurs who are looking to innovate are considering to raise their funds through cryptocurrency.