April 16, 2024

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[THE INVESTOR] Experts urged the Korean government to embrace blockchain and cryptocurrency together, saying that the two are inseparable.

“There would have been be no progress in blockchain technology without cryptocurrencies. Therefore, the government should allow initial coin offerings to promote the industry,” Park Seong-joon, professor of blockchain research center at Dongguk University, said during Huobi Carnival held on Aug. 2-3. 

Jeju Self-governing Province Gov. Won Hee-ryongalso agreed, noting that “cryptography is an essential element in compensating transactions and participation on the blockchain.”

He vowed to make the resort island a blockchain hub to support the activities of cryptocurrency exchanges. 

 

Experts discuss about the blockchain industry during a panel session at Huobi Carnival oin Aug. 2 Park Ga-young/The Investor

Kim Hyoung-joong, professor at Korea University, observed that Jeju should allow ICOs by providing a regulatory sandbox.

While the Korean government is making efforts to promote the blockchain industry it is also trying to regulate cryptocurrencies, they said. Behind such move lies a lack of understanding by policy makers.

Park Si-duk, CEO of Huobi Carnival, said there still is no clear definition or consensus on blockchain and cryptocurrencies. And it is a transitional period when investors feel anxious due to hacking accidents and lack of security measures for investors. “We should discuss how to integrate digital currency into the system,” he noted.

The tough regulatory stance would put Korea behind other competitors, experts stressed. It is the only country apart from China that bans ICOs, following the overheated market last year.

“While both countries appear to regulate the industry, China is allowing way more innovation,” said Choi Joon-yong, CEO (Seoul) of New Margin Capital.

China follows negative regulations which lets firms do what they wants except for a strict list of things they must not do. On the contrary, Korea adopts a positive regulation system which lists what’s permitted and anything not covered is deemed banned.

By Park Ga-young (gypark@heraldcorp.com)