South Korea’s Stock Exchange Chief Urges “Institutionalization Of Crypto”, Calls For Swift Action

South Korea chief of stock exchange has expressed his opinions on the country’s crypto sector. According to local media reports on December 16th, the head of the South Korean stock exchange stated that the country must “institutionalize crypto” and “act quickly” to avoid falling behind its foreign competitors.

The remarks come at a very crucial time given that the nation is undergoing political turmoil that has halted its crypto growth.

South Korea’s Exchange Chief Urges To Institutionalize of Crypto

The head of the Korea Exchange, Jeong Eun-bo, stated in an interview with the South Korean newspaper Maeil Kyungjae that assistance is necessary for the cryptocurrency market to “get past regulatory barriers.”

He explained, “At the recent World Exchange Market (WFE) general meeting, there was serious discussion that it would be difficult to maintain the profit model of the traditional trading market if the virtual currency market is ignored.”

He added, “The average daily trading volume of the domestic stock market is approximately 20 trillion won, but the virtual currency market has surpassed this since Donald Trump was elected as the U.S. president.” 

South Korea’s Martial Law Imposition Puts Crypto Market in Dilemma

The historic imposition of martial law in South Korea earlier this month has delayed the country’s attempts to regulate and reform its cryptocurrency industry until the following year.

Important industry-critical reforms have been neglected, including the introduction of real-name corporate crypto accounts and the legalization of securities token offerings (STOs).

These policies, which were thought to be essential steps in modernizing South Korea’s cryptocurrency industry, are currently in limbo and will likely remain so for some time to come.

South Korea Crypto Market Picked Pace After Martial Law But Still Faces Stagnation

The political instability in South Korea saw crypto markets flourish initially, however, that happiness was short lived.

According to a 10x Research report, trading volumes in South Korea’s cryptocurrency market jumped 22% on December 2 in comparison to the stock market, propelling it ahead.

Over the same 24-hour period, foreign inflows of $385 million into the nation’s stock market were outpaced by cryptocurrency trading activity, which totaled $18 billion.

However, all legislative efforts pertaining to cryptocurrency have been placed on indefinite hold as the National Assembly’s attention has completely shifted to the impeachment process and the budget for the following year.

On December 10, a tax reform bill was narrowly approved by the South Korean National Assembly, delaying the introduction of cryptocurrency taxes until 2027.