Korea, Cryptocurrency Regulatory Plan to Issue CBDCs Next Year: Report

key point

  • Cryptocurrencies are fully regulated by the state.
  • South Korea is now embracing cryptocurrency
  • Countries Will Touch CBDCs too

Korea’s new government Reportedly We have finalized the regulatory framework for the local digital asset ecosystem next year and prepared plans for implementation in 2024. The bill aims to integrate cryptocurrencies like Bitcoin into the country’s institutional system and launch a CBDC in 2023.

According to a regional report released on Wednesday, authorities will enact the Digital Assets Framework Act in 2023, which essentially means cryptocurrencies are fully overseen by the state.

This incident came two months after Yoon Seok-yeol won the presidential election.

The bill will be based on international standards by officials who have pledged to work with the Bank for International Settlements (BIS), the Financial Stability Board (FSB), and US and European watchdogs before being formally introduced.

According to reports, the bill will also support South Korean financial institutions that want to offer cryptocurrency services.

A government official said, “We will strengthen the link between digital asset trading accounts and banks by expanding financial institutions that provide real-time verification services for virtual asset transactions.”

The newly elected governing body also spoke about CBDC (Central Bank Digital Currency) as the administration is expected to approve the country’s central bank’s intention to launch a digital won next year.

Earlier this year, the Bank of Korea announced that it had completed Phase 1 of its CBDC testing program and was in Phase 2.

The government will also issue guidelines on the use of non-fungible tokens and initial coin offerings (ICOs).

Yoon Seok-yul showed keen interest in the digital asset sector by introducing a plan to allow ICOs in the early stages of the presidential election.

In this figure, taken on January 24, 2022, the cryptocurrency Monero is shown in front of a stock graph and US Dollars. Photo: Reuters/Tea Ceremony Rubick

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