Participants at a recent forum hosted by the Korea Blockchain Association in Seoul have called on the South Korean government to implement more supportive measures for blockchain technologies. During the event, held on December 3, 2023, Vice Chairman Moon Young-bae criticized the country’s regulatory framework, which requires explicit permission before launching new business activities in the blockchain sector.
In contrast, Moon pointed out that countries like the United States and other advanced economies are adopting a negative regulation framework, allowing business activities unless specifically prohibited. He remarked, “The Seoul administration has attempted to heavily regulate the blockchain industry related to coins or tokens. On the flip side of the coin, however, there is extraordinary technology at work called blockchain.”
Potential of Blockchain Technology
Blockchain technology serves as a decentralized, distributed digital ledger designed to securely record transactions across multiple computers in a transparent, tamper-resistant, and verifiable manner. Moon emphasized the need for South Korea to enhance its blockchain capabilities, stating, “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.”
Furthermore, he highlighted the potential of blockchain to bolster artificial intelligence (AI) applications by ensuring the trustworthiness of data. Using a historical analogy, he noted, “In the early 20th century, there were lots of car accidents, which hindered the widespread adoption of automobiles. Traffic lights played a crucial role in increasing automobile use by improving safety.” Moon believes that blockchain could play a similar role in enhancing the reliability of AI-related solutions.
Global Trends in Blockchain Regulation
Lee Sang-yoon, CEO of Bloom Technology, corroborated Moon’s sentiments, pointing out that countries such as the United Arab Emirates and Switzerland have made significant strides in deregulating their blockchain industries. Lee noted the shifting regulatory landscape in the United States, particularly following the inauguration of Donald Trump earlier this year. “The advent of the decentralized Internet era is inevitable,” he stated, suggesting that deregulation would help address various challenges facing society.
The forum underscored the urgency for South Korea to reassess its approach to blockchain technology, emphasizing the need for a regulatory environment that fosters innovation and supports the growth of this transformative technology.
As global interest in blockchain continues to rise, the call from industry leaders in South Korea reflects a broader trend towards embracing technology that could drive economic growth and enhance the country’s position in the global digital landscape.
