One of the top executives at Upbit, South Korea’s market-leading crypto exchange, has spoken out in favor of new crypto regulations both at home and abroad – and has suggested that while they may cause the markets more short-term pain, the industry is set to benefit in the long term.
The comments came from Kim Young-bin, the Chief Legal Officer (CLO) at Dunamu, Upbit’s operator. He claimed that – with Seoul edging toward the creation of a new bill to regulate the industry and the European Union developing its own markets in crypto-assets (MiCA) proposal – crypto was about to enter an era of “transition.”
The South Korean media outlet Economist quoted Kim as stating:
“This is a transitional period, whereby cryptoassets are entering the institutional systems in the markets of developed economies.”
Kim added that the changes would “have a positive impact on the blockchain ecosystem in the long term.”
The CLO was speaking at the Upbit Developer Conference (UDC) 2022, currently underway in the Busan Port International Exhibition and Convention Center, in Busan, South Korea.
Kim added that more regulation would cause a “downturn in the industry in the short term,” but claimed that remaining “uncertainty” would be “resolved” by crypto’s “incorporation into the financial system.”
Will New Crypto Regulations Bring STO Hope?
The Upbit executive added that recent comments from domestic regulators on the topic of security token offerings (STOs) were a “positive sign.”
At present, all forms of domestic token issuance remain illegal in South Korea, but the government has suggested it is ready to reverse this ban – first put into place in 2017. The government’s soon-to-be-unveiled bill is likely to address the matter of regulated STOs.
Upbit and other crypto players have hoped to launch STO-related business – to meet the needs of many crypto-keen domestic firms.
Kim was also quoted as opining that “general awareness of blockchain technology” was “improving” in public and governmental circles. Appointing Kim was a major coup for Upbit’s operator: Before joining Dunamu in June this year, the CLO worked as a prosecuting attorney at the Seoul Central District Public Prosecutor’s Office.