Emily Walker
The head of the Korea Exchange recently urged South Korea to reconsider its stance on cryptocurrencies and formalize digital asset regulations swiftly to keep pace with global developments. This plea comes in light of the country’s ongoing political instability, which has postponed any regulatory changes until 2025.
Korea Exchange Head Advocates for Change
Jeong Eun-bo, the chairman of the Korea Exchange, emphasized the need for South Korea to institutionalize cryptocurrency during an interview with Maeil Kyungjae. He remarked that lawmakers and financial bodies should reassess how they perceive digital assets.
Jeong outlined how the crypto sector has expanded considerably, arguing that it has gained considerable influence that should not be overlooked by traditional financial markets. He believes that integrating digital currencies into institutional finance is crucial for South Korea.
Furthermore, Jeong posits that revitalizing the South Korean crypto landscape is essential for maintaining competitiveness with international markets. The current regulatory approach to digital assets has hampered their growth potential, making it hard for the sector to meet various regulatory benchmarks.
If we continue to regard cryptocurrencies merely as speculative assets and hold their adopters accountable, we risk losing our global competitive edge.
He also mentioned that discussions about the future of digital assets took center stage at the World Federation of Exchanges (WFE) meeting, highlighting that ignoring the crypto market would make it challenging for stock exchanges to uphold their traditional profit models.
Jeong urged for a rapid institutionalization of the crypto sector to unlock new value. He pointed out that following the post-US election market rally in early November, the trading volume in the crypto market exceeded that of the domestic stock market.
According to Bitrabo, the trading volume in the crypto market surpassed the local stock market’s $14 billion by 22%. Additionally, South Korean exchanges marked their highest trading volume this year at $34 billion, even amidst the political upheaval.
Crypto Regulation Delayed Until 2025
Despite Jeong’s urgent recommendations for market rejuvenation and formal crypto regulations, such initiatives have been put on hold due to the current political crisis, which could linger for several months.
On December 3, President Yoon Suk Yeol declared the first emergency martial law in 40 years, generating widespread concern among the populace. He accused the opposition Democratic Party, which dominates the National Assembly, of aligning with North Korean elements and engaging in anti-state behavior.
Yoon indicated that the emergency measure was aimed at “eliminating pro-North Korean factions and sustaining constitutional democracy.” Nonetheless, the National Assembly quickly nullified his declaration, ending the martial law within six hours.
Subsequently, Yoon faced impeachment, and his presidential powers have been suspended. The Constitutional Court is presently evaluating whether to remove or reinstate him, as reported by the Associated Press.
Other news outlets have indicated that all crypto-related regulatory efforts have been stalled due to the ongoing political turmoil. The reports suggest that no votes are expected in the near future, but discussions regarding digital asset regulations may resume in early 2025.
The Court’s ruling is anticipated to take up to 180 days, with the first pretrial hearing set for December 27.
