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South Korean lawyers urge government to establish legal framework for blockchain

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South Korea’s lawyers have urged the government to quickly establish a legal framework to help develop the blockchain-based cryptocurrency industry and protect investors, Reuters has reported.

“We urge the government to break away from negative perceptions and hesitation, and draw up bills to help develop the blockchain industry and prevent side effects involving cryptocurrencies,” Kim Hyun, president of the Korean Bar Association, said yesterday at a press conference held at the parliament.

The Korean government, together with the country’s financial regulators, is conducting a study on the sector and intends to use the study’s findings to make an informed decision on blockchain regulation. At the same time, the government is planning to increase the funding for development of blockchain projects.

Yesterday it was reported that the government had held a meeting on DLT-related industry and blockchain technology, with the Ministry of Science and ICT, the Ministry of Information and Communication and the Democratic Party of Korea being among the participants. The ministers had decided to increase next year’s budget for blockchain development to about $35 million. In addition, the Ministry of Science and ICT wants to double the number of blockchain projects it approves for development in the public sector. This year, the ministry received 72 blockchain project applications from 41 institutions and approved six of them. It wants to increase this figure to 12 in 2019.

During the meeting a vice minister of the Ministry of Science and ICT said that “everyone agrees that the blockchain is a technology [that will] change the future”.

“We basically need to grow in the market […] We will also need institutional and legislative support from the National Assembly [Korean parliament]. I look forward […] for the development of the blockchain industry in Korea,” the vice minister added, as quoted by Cointelegraph, which reported on the story.

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