South Korea has long been at the forefront of technological innovation and digital progress. A country most favourable to investors, it has a booming and developing economy. It has also been a key leader in the progression of blockchain technology and cryptocurrency advancement. Recently, it passed amongst the most comprehensive cryptocurrency regulations in the world.
The Diplomat reported that South Korea was amongst the world’s first cryptocurrency enthusiasts, attributable perhaps to the generally tech-savvy population of that country. One-in-three workers were known to be investing in cryptocurrency. Moreover, their fiat currency become one of the world’s most used to trade in Bitcoin. The South Korean government made the first efforts to regulate this surge in cryptocurrency popularity in 2017.
South Korea gains recognition as one of the most favourable locations for cryptocurrency and blockchain-minded startups. This makes it a key innovator in the global digital asset sphere due to the immense human capital and drive to achieve this, comparable perhaps to its neighbour Japan.
South Korea’s cryptocurrency regulations
Like much of the world, including South Korea’s neighbour China, the country passed legislation to protect cryptocurrency usage in 2020.
Tech Crunch reported that the new legislation provides a broad regulatory framework to oversee and legalise cryptocurrency in the country. As it is one of the country’s in which cryptocurrency popularity has only surged as years have passed, a significant proportion of the population dabble in the field. It has thus become increasingly necessary for South Korea’s government to monitor and oversee digital asset transactions, as well as prevent money laundering through cryptocurrency. The regulations will no doubt also increase the taxability of cryptocurrency, which is a substantial benefit to the economy.
Since the passing of the new legislation, four South Korean banks have pledged to start providing cryptocurrency services, reported Bitcoin.com. This Asian nation thus continues to be a centre for blockchain development and innovation.