South Korea could be reviewing the restrictive virtual currency regulations imposed in 2017 and 2018. If the regulations change and become more crypto-friendly it could be very positive for the development of the whole industry. South Korea has imposed very hard regulations for Initial Coin Offerings (ICOs) – which have been banned – and for traders in the space.

South Korea Could Change its Crypto Regulations

According to the local news site, ZDNet Korea, officials in the country could be re-evaluating the policies imposed to ensure a healthy ecosystem growth. During the Deconomy conference that took place in Seoul, several top government officials explained that the policies regarding cryptocurrencies and blockchain technology could change in the near future.

Song Hee-Kyong, the co-president of the 4th Industry Forum of the National Assembly, explained that the South Korean government hindered the growth of the industry in the country. On the matter, he mentioned:

“The government has misunderstood the virtual currency and tried to meet the real currency standards so there are various problems. The industry does not stand still while waiting for the regulatory sandbox authorization, so it is just like keeping it in the box.”

At the same time, officials explained that they are going to be acting with caution to protect users and citizens. Back in 2017, when the cryptocurrency market was expanding and reaching new records, several Initial Coin Offerings (ICOs) and other scams spread all over the world. Some of them end up affecting users and their funds.

Won Hee-Ryong, a member of the Free Republican Party, said that if they are concerned about regulations, they can operate a regulatory agency with the government itself in Jeju Island. In this way, they would be able to make a case study and try to create a foundation for the local government to understand and analyse virtual currencies.

South Korea banned ICOs due to concerns related to the new issuance of tokens and other fraudulent methods that attackers had to steal users.

Although there are very hard regulations in the country, the local company Kakao is working on a blockchain network and virtual currency to offer crypto-related services to customers of its application.

There are other countries such as Switzerland and Malta that have implemented crypto-related regulations that aim at increasing the investment of virtual currency companies in their jurisdictions. This allowed these two nations to attract a large number of firms from different countries.