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Korea Exchange’s chief recently suggested that South Korea must review its crypto approach and institutionalize digital assets soon to compete against other nations. The call for change comes amid the country’s political turmoil, which has halted all related regulations until 2025.
Korea Exchange Chief Calls For A Change
On Sunday, Jeong Eun-bo, chairman of the South Korea Stock Exchange, called for the institutionalization of crypto in the country. In an interview with the local newspaper Maeil Kyungjae, Jeong stated that lawmakers and financial institutions must look at digital assets differently.
The chairman argued that the crypto industry has significantly grown in recent years, making it considerably influential. As such, “it cannot be ignored by traditional markets,” adding that South Korea should try incorporating digital assets into institutional finance.
Moreover, Jeong considers that the South Korean crypto market needs to be revitalized to compete with other countries and prevent falling behind international markets. The current treatment of digital assets has made the market fail to cross various regulatory thresholds for years, challenging the market’s development and competitiveness.
If we continue to vaguely treat cryptocurrencies as speculative assets and hold those who adopt them liable, we will fall behind in international competitiveness.
The Korea Exchange chairman shared that the digital assets market’s future was “seriously discussed” at the recent World Federation of Exchanges (WFE) meeting, debating that it would be “difficult” for stock exchanges to maintain “the traditional market’s profit model by neglecting the crypto market.”
As a result, he suggested that South Korea should strive to “quickly institutionalize the crypto market to generate new added value.” Jeong noted that after the post-US election rally started in early November, the digital assets market overtook the domestic stock market.
As reported by Bitcoinist, the crypto market’s trading volume surpassed the local stock market’s $14 billion volume by 22%. Additionally, South Korean exchanges recorded their largest levels this year, hitting $34 billion amid the political turmoil.
Crypto Regulations On Pause Until 2025
Despite Jeong’s call for revitalizing the market and institutionalizing digital assets, crypto-related regulations will be suspended until the political crisis resolution, which could take a few months.
On December 3, South Korean President Yoon Suk Yeol declared the first emergency martial law in four decades, causing panic among Koreans. Yoon accused the country’s opposition Democratic party, which has a majority in the National Assembly, of sympathizing with North Korea and anti-state activities.
He claimed that the measure was taken to “eradicate pro-North Korean forces and protect the constitutional democratic order.” However, the National Assembly voted to nullify the President’s declaration and successfully ended the emergency martial law in six hours.
Since then, the Assembly impeached Yoon, and his presidential powers have been suspended. The Constitutional Court is currently determining whether to remove Yoon from office or reinstate him, Associated Press reports.
Other local media outlets revealed that all crypto-related policies have been halted due to the country’s ongoing political issues. The report noted that the aftermath of the martial and impeachment has made it “impossible to expect a vote,” but expects discussions about digital assets regulation to resume in the first half of 2025.
The Court’s decision could take up to 180 days, with the first pretrial hearing scheduled for December 27.
Bitcoin (BTC) is trading at $103,547 in the one-week chart. Source: BTCUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
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