A South Korean industry group has started pushing to introduce a critical crypto disclosure system that would force blockchain and crypto administrators to make decisive details about their projects and platforms public.
According to iNews24 and Gukje News, the proposal is the Korea Blockchain Enterprise Promotion Association (KBEPA) brainchild, a body depicting several crypto-related business and academic interests. The organization thinks that the crypto industry has generated a negative public image in South Korea – and believes increased transparency and data-sharing could help resolve the issue.
Disputes including several high-profile scams posing as crypto exchanges and crypto token issuers have rocked South Korean confidence in crypto, as well as the Telegram Nth room case and an outburst of hypothesis and initial coin offerings (ICOs) in late 2017. Several exchanges in the country have also been hit with fraud wraps, hacks, and ownership controversies.
These circumstances have led Seoul to retain a hard line on all things crypto-concerned, including the upholding of a total ban on ICOs and a set of strict standards to be forced on crypto exchanges starting in 2021.
The KBEPA said that crypto companies could help enhance their profiles by coming out of the shadows. The body has recommended making a new revision to the nation’s landmark-first crypto bill, which proclaims in March 2021 to add a obligatory disclosure system that would seek to do the following:
- Ensure the safety of companies involved in trading cryptoassets or tradable tokens
- Ensure market reliability
- Protect investors
Token issuers and exchanges would also be obliged to present accurate information on their blockchain networks’ status, the number of tokens traded, and any relevant changes periodically – or if significant changes are made.
The body claims will help put the industry on a level footing with the securities industry, whose governing bodies make similar stock market-listed companies’ similar requirements and boost the crypto sphere’s credibility in South Korea.
Lee Han-young, the body’s chief, stated that he was convinced that member of the parliament at the National Assembly would consider the proposal, adding that its acceptance would help “make South Korea a global powerhouse in the blockchain sector.”