It is necessary to protect cryptocurrency investors
Rep. Lee Yong-woo of the ruling Democratic Party of Korea (DPK) Friday submitted a cryptocurrency bill to the National Assembly requiring relevant businesses to register with, or get permission from, the financial authorities. If they engage in unlicensed "crypto business," they will face up to five years in prison or a 50 million won ($41,500) fine. Rep. Lee said the bill was designed to better protect individual investors.
The bill is the first of its kind seeking to regulate cryptocurrencies. The nation's digital money market has continued to grow exponentially to the extent of surpassing the size of the stock markets here. However, the virtual currency boom has caused a set of problems: mushrooming exchanges, price manipulation, illegal overseas money transfers and money laundering. Individual investors could incur huge losses arising from the volatile coin exchanges.
Despite such adverse effects, however, the government has failed to take appropriate measures to regulate the markets and protect investors. Under these circumstances, some exchanges are seeking to set up customer service centers to protect investors and monitor suspicious fraudulent trading. We hope Rep. Lee's legislation effort will be the first step toward safeguarding investors.
Policymakers and politicians cannot deflect criticism for having done nothing to ensure safe and transparent trading of cryptocurrencies over the past three years despite the investment boom. The National Assembly should speed up the legislative process to lay the legal groundwork for digital currencies and their transactions. The opposition People Power Party has set up a taskforce to deal with the issue; but it needs to work together with the DPK to enact relevant laws.
The financial authorities should learn lessons from the U.S. Securities and Exchange Commission (SEC). SEC Chairman Gary Gensler underlined the need for more steps to protect bitcoin and other crypto investors. During a hearing at the U.S. House of Representatives, Thursday, Gensler called on Congress to legislate a law providing the SEC with more authority to regulate the crypto market more efficiently. He said the SEC would remain technologically neutral regarding market innovation.
Gensler's remarks show how the U.S. administration has been making strenuous efforts to help crypto money take root in the markets. Last month, Coinbase, a cryptocurrency exchange platform operator, was listed on the Nasdaq. The company hailed Gensler's statement, describing it as opening the way to discuss the right direction for crypto markets. Cryptocurrencies can contribute to the development of blockchain technology and the promotion of financial innovation.
In contrast, Korea's Financial Services Commission (FSC) is adopting different policies. FSC Chairman Eun Sung-soo provoked criticism when he said the authorities cannot protect crypto investors as cryptocurrencies have no intrinsic value. He even threatened to shut down most crypto exchanges unless they meet the operation requirements by September. Eun's remarks drew angry reactions from investors, particularly those in their 20s and 30s. We urge the authorities to be more responsible and create a regulatory framework for virtual assets.
Rep. Lee Yong-woo of the ruling Democratic Party of Korea (DPK) Friday submitted a cryptocurrency bill to the National Assembly requiring relevant businesses to register with, or get permission from, the financial authorities. If they engage in unlicensed "crypto business," they will face up to five years in prison or a 50 million won ($41,500) fine. Rep. Lee said the bill was designed to better protect individual investors.
The bill is the first of its kind seeking to regulate cryptocurrencies. The nation's digital money market has continued to grow exponentially to the extent of surpassing the size of the stock markets here. However, the virtual currency boom has caused a set of problems: mushrooming exchanges, price manipulation, illegal overseas money transfers and money laundering. Individual investors could incur huge losses arising from the volatile coin exchanges.
Despite such adverse effects, however, the government has failed to take appropriate measures to regulate the markets and protect investors. Under these circumstances, some exchanges are seeking to set up customer service centers to protect investors and monitor suspicious fraudulent trading. We hope Rep. Lee's legislation effort will be the first step toward safeguarding investors.
Policymakers and politicians cannot deflect criticism for having done nothing to ensure safe and transparent trading of cryptocurrencies over the past three years despite the investment boom. The National Assembly should speed up the legislative process to lay the legal groundwork for digital currencies and their transactions. The opposition People Power Party has set up a taskforce to deal with the issue; but it needs to work together with the DPK to enact relevant laws.
The financial authorities should learn lessons from the U.S. Securities and Exchange Commission (SEC). SEC Chairman Gary Gensler underlined the need for more steps to protect bitcoin and other crypto investors. During a hearing at the U.S. House of Representatives, Thursday, Gensler called on Congress to legislate a law providing the SEC with more authority to regulate the crypto market more efficiently. He said the SEC would remain technologically neutral regarding market innovation.
Gensler's remarks show how the U.S. administration has been making strenuous efforts to help crypto money take root in the markets. Last month, Coinbase, a cryptocurrency exchange platform operator, was listed on the Nasdaq. The company hailed Gensler's statement, describing it as opening the way to discuss the right direction for crypto markets. Cryptocurrencies can contribute to the development of blockchain technology and the promotion of financial innovation.
In contrast, Korea's Financial Services Commission (FSC) is adopting different policies. FSC Chairman Eun Sung-soo provoked criticism when he said the authorities cannot protect crypto investors as cryptocurrencies have no intrinsic value. He even threatened to shut down most crypto exchanges unless they meet the operation requirements by September. Eun's remarks drew angry reactions from investors, particularly those in their 20s and 30s. We urge the authorities to be more responsible and create a regulatory framework for virtual assets.
![[INTERVIEW] North Korean defectors bear brunt of remittance scams](https://img.koreatimes.co.kr/upload/thumbnailV2/75c261156ac7415fad92dc1d7c1b30cf.jpg/dims/resize/178/optimize)
![[INTERVIEW] Foreign-born entertainers seek to revolutionize local industry](https://img.koreatimes.co.kr/upload/thumbnailV2/4a6b2bd3d23044d699dee3c5bb956863.jpg/dims/resize/178/optimize)
