The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Finance
  • Companies
  • Economy
  • Markets
Fri, July 1, 2022 | 07:46
Korean lawmaker to accept cryptocurrency donations
Posted : 2021-12-30 15:01
Updated : 2021-12-30 17:28
Print Preview
Font Size Up
Font Size Down
Rep. Lee Kwang-jae of the ruling Democratic Party of Korea speaks during a National Assembly general meeting on Dec. 1. Joint Press Corps-Yonhap
Rep. Lee Kwang-jae of the ruling Democratic Party of Korea speaks during a National Assembly general meeting on Dec. 1. Joint Press Corps-Yonhap

By Lee Min-hyung

Rep. Lee Kwang-jae of the ruling Democratic Party of Korea said Thursday that he would start accepting cryptocurrency donations sometime in mid-January, for the first time among the nation's lawmakers, a move to speed up the institutionalization of the virtual currency ecosystem here.

Anyone who wants to sponsor him can transfer cryptocurrency into the electronic wallet of his office. The sponsored digital asset will then be exchanged to the Korean won and deposited into his sponsorship account.

This process allows potential supporters to make donations via their bitcoin, ethereum or other digital currencies directly to his office. Receipts for donations will be issued in the form of non-fungible tokens (NFTs), and sent to each sponsor's email address. The NFT is a kind of immutable digital asset, often described as a unique digital certificate.

Given the conservative view on cryptocurrencies in the political circle, Korea's progress in the digital asset industry and related blockchain technology still falls far behind that of other developed countries, such as the United States.

Lee expects that this latest decision will help raise awareness about crypto assets and NFTs.

"I have had a deep sense of regret that the politicians here have had an outdated perception of digital assets at a crucial time when the blockchain technologies used for cryptocurrencies, NFTs and the metaverse, are advancing rapidly day after day," Lee said. "It is high time that we undertake innovative experiments to enhance our understanding of these future technologies and change perceptions of digital currencies and NFTs."

But as the introduction of the crypto donation project is the first of its kind here, Lee's office will only be able to receive up to 10 million won ($8,420) until the system is legally institutionalized. Under the trial program, each sponsor can donate digital assets worth a maximum of 1 million won.

"The political circle should change first to take the lead in the digital transformation. The relevant technologies and industries are developing at an alarming pace, but the policy and laws here have failed to catch up with the paradigm shift."

The plan is illustrative of the Korean government's tightening regulatory pressure on the cryptocurrency industry.

In September, dozens of the nation's crypto exchanges had to shut down their Korean won-based transaction services on their trading platforms, due to the introduction of the Special Financial Information Act here.

Under the regulation, the Financial Services Commission did not grant approval to them, as they had failed to secure real-name bank accounts for users to continue trading cryptocurrencies via the local currency.

Exchanges that sign or renew contracts with commercial banks can be granted licenses to operate the service. Only four of the major exchanges here succeeded in renewing their contracts with affiliated lenders, and the rest have had to suspend their services.

The local cryptocurrency industry is stepping up its criticism on financial watchdogs, claiming that the overly strict set of regulations will continue to prevent Korea from joining the race in this emerging financial area.

Kim Hyoung-joong, a professor in the Graduate School of Cybersecurity at Korea University, who is also serving as the head of the Korean Society of Fintech, said that the regulation mandating the issuance of real-name bank accounts is nothing more than a "malformed regulatory frame."

"The financial authorities insist that the regulation was adopted at the request of the Financial Action Task Force, but the intergovernmental organization is not even aware of what the rule is," Kim said in a recent seminar.



Emailmhlee@koreatimes.co.kr Article ListMore articles by this reporter
 
LG
LG
  • Will Japanese PM Kishida accept Yoon's olive branch?
  • Heavy downpour hits central regions [PHOTOS]
  • Minimum wage for next year increased 5% to 9,620 won
  • Major expressway in Seoul closed off due to heavy downpours
  • Hole-in-one golf insurance policy exploited by fraudsters
  • Samsung chief's daughter to attend Colorado College in fall
  • 'Tangible outcome' in arms deal with Poland expected soon
  • Jill Biden advises first lady Kim: "Just be yourself"
  • [INTERVIEW] 'New order takes root in fashion e-commerce industry'
  • LG, Hanwha, LS eye EV charging biz for future growth
  • [INTERVIEW] Park Hae-soo talks about differentiating his character in 'Money Heist' remake [INTERVIEW] Park Hae-soo talks about differentiating his character in 'Money Heist' remake
  • Korean studies struggle to grow despite success of K-pop, K-dramas Korean studies struggle to grow despite success of K-pop, K-dramas
  • 'Money Heist: Korea' ranks No. 2 on global Netflix chart 'Money Heist: Korea' ranks No. 2 on global Netflix chart
  • [INTERVIEW] Park Chan-wook says 'Decision to Leave' is sexy without sex scenes [INTERVIEW] Park Chan-wook says 'Decision to Leave' is sexy without sex scenes
  • [INTERVIEW] Bae Suzy shows another side in 'Anna' [INTERVIEW] Bae Suzy shows another side in 'Anna'
DARKROOM
  • Afghanistan earthquake killed more than 1,000 [PHOTOS]

    Afghanistan earthquake killed more than 1,000 [PHOTOS]

  • Divided America reacts to overturn of Roe vs. Wade

    Divided America reacts to overturn of Roe vs. Wade

  • Namaste: Yogis to celebrate International Yoga Day

    Namaste: Yogis to celebrate International Yoga Day

  • Poor hit harder by economic crisis

    Poor hit harder by economic crisis

  • Roland Garros 2022

    Roland Garros 2022

The Korea Times
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Location
  • Media Kit
  • Contact Us
  • Products & Service
  • Subscribe
  • E-paper
  • Mobile Service
  • RSS Service
  • Content Sales
  • Policy
  • Privacy Statement
  • Terms of Service
  • 고충처리인
  • Youth Protection Policy
  • Code of Ethics
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group