On 21 May, the South Korean News Service, Yonhap-News, reported that the government of the country has announced a second round of the “Blockchain Regulation Improvement Study Group.” The study group is an initiative by the South Korean Ministry of Science and Technology. It is a part of the Blockchain Technology Development Strategy which was adopted by the government in the month of June, last year.
This year the Korean Supreme Prosecutor’s Office had mandated the establishment of a task force which will be responsible for tackling cryptocurrency related crimes, like frauds and money laundering. Such is the concern in South Korea regarding crypto-regulations.
Blockchain Regulation Improvement Study Group
The Blockchain Regulation Improvement Study Group was first instituted to deal with regulatory challenges. The first study group dealt with questions of legality surrounding personal information, smart contracts, legal effects of electronic documents, digital signatures, to name a few. It also extended to the broader themes of the implications of using blockchain technology.
The second study group wants to study the consequence of blockchain in five strategic industries. The industries include logistics and distribution, public services, health, finance, and energy. The discussion will be focused on blockchain technology and can be adopted for services like metering data management, health record management, an integrated management system for public services, blockchain-based ID for integrated financial networks among others. The Seoul Metropolitan Government and the South Korean state, in general, have been investing heavily in ventures involving blockchain technologies. The country is, therefore, taking the lead in terms of adopting blockchain technology for the management of the functions of the government and carrying out of day to day to activities, and also in terms of utilizing it as a new market opportunity which can be a key to the economy’s growth, and startup ecosystem. In this way, South Korea can become one of the most conducive states for the development of blockchain and the cryptosector after countries like Malta.