South Korea is making massive strides in integrating blockchain and crypto technology into its economy.
The CEO of Hashed, South Korea’s leading crypto venture capital firm, Simo Kim, has stated the primary changes expected in the nation’s regulatory landscape. These changes include promoting institutions participating in crypto investments and issuing tokens in South Korea.
The development comes as the government is postponing crypto taxation for two more years, promoting further development in the domain. The delay in crypto taxation provides a window for the nation to solidify its position as a crypto innovation and investment hub.
The additional two years will allow investors to participate more fully in the crypto market. The regulations will also help companies open crypto accounts and promote the issuance of new tokens.
At the same time, the nation is anticipated to launch a regulatory framework for STOs (Security Token Offerings) and RWAs (Real World Assets), which will bring structure and clarity to the market.
Alongside, the government is trying to create accounting standards for digital assets. If executed, it will be crucial in integrating virtual assets into the financial system worldwide. Kim’s comment also highlights the importance of accepting crypto companies as genuine venture capital firms rather than bundling them with gambling companies.
The shift would also create favorable conditions for blockchain ventures to expand and attract investors. What’s more, is that DEXs in South Korea are expected to gain access to overseas markets.
It will help them expand their network and facilitate an international crypto ecosystem. Moreover, restrictions on the investments of South Korean companies in foreign blockchain firms are expected to be lifted.
Doing so will increase capital flow into the blockchain market globally and nationally. It will also boost the development of blockchain solutions within the South Korean territory.
