South Korea Should ‘Quickly Institutionalize’ Crypto, Stock Exchange Chief Says

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As a seasoned researcher with extensive experience in the financial sector and a keen interest in digital assets, I find Jeong Eun-bo’s call for the institutionalization of cryptocurrencies in South Korea both timely and insightful. The growth of the crypto industry is undeniable, and it would be shortsighted to ignore its potential impact on traditional markets.

In simpler terms, the head of Korea Exchange has proposed that South Korea should reconsider its stance on cryptocurrencies and formally adopt digital assets in the near future to keep pace with other countries. This recommendation is being made during a period of political instability within the country, which has temporarily halted any related regulations until 2025.

Korea Exchange Chief Calls For A Change

As an analyst, on Sunday, I advocated for the formal recognition and integration of cryptocurrencies within South Korea’s legal and financial framework, in a conversation with Maeil Kyungjae, a local newspaper. In my view, it is crucial that our lawmakers and financial institutions reconsider their perspective towards digital assets to ensure they are treated fairly and responsibly.

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.

As a researcher studying the dynamic landscape of cryptocurrencies, I firmly believe that the South Korean market requires a boost in order to maintain parity with global counterparts and avoid being left behind. The current regulatory framework has hindered our market’s progress for years, as it has failed to surpass numerous regulatory benchmarks. This persistent challenge not only impedes our market’s growth but also undermines its competitive edge on the international stage.

Failing to recognize the potential of cryptocurrencies by viewing them solely as speculative investments and penalizing those who utilize them could result in us losing our edge on an international scale in terms of competitiveness.

At a recent gathering of global exchange leaders from the World Federation of Exchanges (WFE), I was part of some intense discussions about the digital assets market’s future. It became apparent that it might be challenging for traditional stock exchanges to preserve their current profit models if they choose to overlook the crypto market.

Consequently, he advocated for South Korea to swiftly establish a framework for the cryptocurrency market to create fresh economic benefits. Jeong pointed out that following the stock market surge triggered by the US election results in early November, the value of digital assets surpassed that of the local stock market.

According to Bitcoinist‘s report, the trading volume in the crypto market has exceeded the stock market’s $14 billion volume by a significant 22%. Furthermore, South Korean cryptocurrency exchanges have experienced their highest activity this year, reaching an impressive $34 billion, even amidst political unrest.

Crypto Regulations On Pause Until 2025

Although Jeong advocates for rejuvenating the market and formalizing digital assets, it appears that crypto regulations will temporarily halt due to the ongoing political crisis. This suspension could persist for several months until a resolution is reached.

On December 3, South Korean President Yoon Suk Yeol announced the initial implementation of martial law for the first time in four decades, sparking concern among South Koreans. Yoon claimed that the ruling Democratic Party, which holds a majority in the National Assembly, has allegedly shown sympathy towards North Korea and actions detrimental to the state.

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.

Following the impeachment, Yoon’s presidential powers are temporarily on hold as the Constitutional Court weighs its decision on either removing him from office or reinstating him, according to Associated Press reports.

As an analyst, I’ve uncovered some insightful information: Local media sources have disclosed that all crypto-related policies within our nation are currently on hold due to the ongoing political instability. The latest report suggests that the aftermath of the martial law and impeachment process has created a situation where it is “infeasible to anticipate a vote.” However, they predict that conversations surrounding digital assets regulation will restart 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.

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2024-12-17 07:42