Participants at a forum organized by the Korea Blockchain Association in Seoul on December 3, 2023, emphasized the need for the South Korean government to adopt a more proactive stance in promoting blockchain technologies. The call for action reflects a growing concern among industry leaders regarding the regulatory landscape that currently governs blockchain operations in the country.
During the event, Moon Young-bae, Vice Chairman of the association, criticized South Korea’s existing regulatory framework. He highlighted the requirement for explicit permission before launching new business activities, contrasting it with the more flexible “negative regulation” approach favored by the United States and other advanced economies. According to Moon, this difference hampers innovation and growth within the blockchain sector.
“The Seoul administration has attempted to heavily regulate the blockchain industry related to coins or tokens,” Moon stated. “On the flip side, however, there is extraordinary technology at work called blockchain.” He urged for a shift towards a regulatory environment that fosters development rather than stifles it.
Blockchain technology serves as a decentralized, distributed digital ledger designed to securely record transactions across multiple computers. It is characterized by its transparency, tamper-resistance, and verifiability. Moon emphasized the importance of harnessing the potential of blockchain: “Given its upside potential, we need to put more effort into developing blockchain technology. For example, Korea needs to promote the creation of its own main network to support real-world blockchain operations.”
The discussion also touched on the synergies between blockchain and artificial intelligence (AI). Moon drew a historical parallel, suggesting that just as traffic lights enhanced the safety and adoption of automobiles in the early 20th century, blockchain could similarly bolster AI applications by ensuring the trustworthiness of data and solutions.
In agreement with Moon’s sentiments, Lee Sang-yoon, CEO of Bloom Technology, noted that deregulation in countries such as the United Arab Emirates and Switzerland has significantly benefited their blockchain industries. He mentioned that the U.S. is also moving towards a more relaxed regulatory environment following the inauguration of President Donald Trump earlier this year.
“The advent of the decentralized Internet era is inevitable,” Lee asserted. “It will help address many challenges of people down the road.” He underscored the urgency of adapting to these changes, urging the South Korean government to foster an environment conducive to innovation in blockchain technologies.
As the conversation around blockchain continues to evolve, the calls from industry leaders reflect a critical juncture for South Korea. With the right regulatory adjustments, the country has the potential to position itself as a leader in blockchain technology and its applications across various sectors.
