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This year, the administration under new President Yoon Suk-yeol will develop a draft for the “Digital Asset Basic Act.”

South Korea to institutionalize cryptocurrencies by 2024

12.05.2022 - 11:45 Vasiliy Smirnov Vasiliy Smirnov

What’s new? By 2024, South Korea’s administration under new President t Yoon Suk-yeol will develop a new regulatory framework to institutionalize cryptocurrency. According to local media reports, citing a leaked government report, a draft for the “Digital Asset Basic Act” will be introduced as early as 2022. The presidential administration confirmed the validity of the leak but noted that the released documents are not the final versions.

South Korean media’s material

What are the government’s plans? The forthcoming bill includes measures to protect investors and stabilize the market by regulating the issuance of digital assets. The new laws will affect, among other things, the market activity of crypto exchanges, coin listings as well as NFTs. The document says that the government’s plans include reviewing the development of a central bank digital currency (CBDC).

What events happened before? In February, the Ministry of Science, ICT and Future Planning of South Korea allocated 223,7 billion won ($186,7 million) to create a national metaverse. The government agency intends to use the project as a platform for urban development, education, and media.

During the presidential campaign, the campaign headquarters of Democratic presidential candidate Lee Jae-myung accepted donations in cryptocurrency and sent rewards in the form of NFT for them. Both candidates also held an electoral campaign on the local cable TV network MBN’s metaverse.

In April, a South Korean resident was arrested for NFT fraud. He is accused of artificially inflating the value of tokens. According to the investigation materials, nine investors lost a total of 210 million won ($165 981).