Crypto Regulation on the Horizon in South Korea and Hong Kong

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The South Korean government is working on crypto regulation and Hong Kong citizens are demanding protections due to the rise in crypto scams.

This year, governments around the world are looking to implement regulatory frameworks for crypto regulation. While some governments have launched a crackdown, others are welcoming crypto, with proper rules and guidelines.

South Korean Industry Stakeholders Advise Government on Crypto Regulation

According to the Financial Times, Yulchon, the South Korean digital asset class law firm, is helping the government tighten oversight of the country’s exuberant crypto industry.

South Korean citizens are heavily exposed to the crypto asset class. More than 13% of Bitcoin’s global trading volume comes from the Korean Won. But, citizens have also fallen victim to various crypto scams.

South Korean Do Kwon, the founder of the Terra Luna ecosystem, was responsible for pushing the industry into a crypto winter last year. It is estimated that around 200,000 South Koreans have invested in Kwon’s TerraUSD.

Last month, authorities arrested Coinone executives on suspicion of accepting bribes to list tokens. Fearing that the leaders would flee the country like Kwon, the judge issued an arrest warrant.

In June 2022, South Korean stock exchanges inaugurated the Digital Asset Exchange Alliance (DAXA) following the collapse of Terraform Lab. Yulchon helps with detailed guidelines to DAXA, and ultimately DAXA advises the government on regulations.

The DAXA includes crypto exchanges like Upbit, Bithumb, Coinone, Korbit, and Gopax.

Crypto Regulation Bill

Last month, BeInCrypto reported that South Korea’s cryptocurrency bill had cleared the first phase of National Assembly review. The bill is expected to become law this year.

Kim Ik-hyun, Partner at Yulchon, said:

South Korea is becoming more proactive in creating the regulatory framework, but the bills should pass quickly to protect investors.

Hong Kong fights scammers while dreaming of becoming a crypto hub

Hong Kong has made headlines for its recent crypto-friendly stance, with its vision to become a crypto hub. But now, there is a concern for balance between the priorities of protecting investors and supporting innovation.

According to another report by the FT, the number of crypto-related scams in Hong Kong increased by 67% last year compared to the previous year of 2021. Crypto fraudsters committed frauds of a worth HK$1.7 billion ($217 million) in 2022.

Therefore, Hong Kong lawyers are working with regulators to better protect crypto investors in a way that does not harm innovation.

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Disclaimer

In accordance with the guidelines of the Trust Project, BeInCrypto is committed to providing impartial and transparent reports. This news article aims to provide accurate and timely information. However, readers are urged to independently fact-check and seek professional advice before making any decisions based on this content.

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