Yoon Suk-yeol, the newly-elected President of South Korea, has reportedly informed his administration to prepare laws for the crypto sector by 2024. The country hopes to roll out legislation for debate in 2023.
Kukmin, a South Korean newspaper, reported that the government was considering introducing the Digital Asset Basic Act (DABA) in 2024; it is part of the 110 policy changes that the new president introduced earlier this year. The newspaper backed this information with a leaked government document.
The government intends to grow the current infrastructure for crypto-fiat transactions, allowing more banks to make their foundation for fiat-crypto exchange. As of now, there are just four banks in the country that have this capability. The South Korean authorities hope to standardize non-fungible tokens (NFTs) and present a law framework for initial coin offerings (ICOs).
The local Financial Stability Board (FSB) aims to draft the bill with the experience of the world’s largest economies and at par with international norms. The FSB will also cooperate with the United States and EU regulators to develop a solid framework. Basel-based Bank for International Settlements (BIS) is also cooperative in developing this bill.
These reports come soon after South Korea announced the issuance of a central bank digital currency (CBDC) is also on the table. The first phase of mock testing was completed in January this year.
The newly elected president has been very open about this openness to embracing crypto, but with caution. The country has revoked its ban on ICO offerings and also deferred taxation on crypto investment gains until the Digital Asset Basic Act is enacted (which won’t be until 2024).