Participants at the Korea Blockchain Association forum held in Seoul on December 3, 2023, urged the South Korean government to adopt more proactive measures to foster blockchain technologies. The forum highlighted a growing concern regarding the country’s regulatory framework, which requires explicit permission before initiating new business activities in the blockchain sector.
Moon Young-bae, Vice Chairman of the Korea Blockchain Association, criticized the current positive regulation system. He contrasted South Korea’s approach with that of the United States and other advanced economies, which generally implement a negative regulation framework that allows business activities unless specifically prohibited. This shift in perspective, he argued, is essential for the growth of the blockchain industry in South Korea.
“The Seoul administration has attempted to heavily regulate the blockchain industry related to coins or tokens,” Moon stated. “On the flip side of the coin, however, there is extraordinary technology at work called blockchain.” He emphasized the need to invest in developing blockchain technology, suggesting that South Korea should promote the creation of its own main network to bolster real-world blockchain operations.
Blockchain’s Role in AI and Future Technologies
Moon also explored the potential of blockchain technology to enhance artificial intelligence (AI) applications. He drew a parallel between the early challenges faced by the automobile industry and the current state of AI. “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,” he explained. “By ensuring the trustworthiness of AI-related data and solutions, blockchain can strengthen AI in a similar way.”
Echoing these sentiments, Lee Sang-yoon, CEO of Bloom Technology, highlighted the deregulation trends in other countries. His company, which has developed its own main network, Locus Chain, is a member of the Korea Blockchain Association. “Countries like the United Arab Emirates and Switzerland have significantly deregulated the blockchain industry. Following the inauguration of President Donald Trump earlier this year, the United States is also moving in that direction,” Lee noted.
He further stated, “The advent of the decentralized Internet era is inevitable. It will help address many challenges of people down the road.”
The forum’s discussions reflect a broader push within the blockchain community for regulatory reform that could stimulate innovation and growth in South Korea’s technology landscape. As the country looks to bolster its blockchain capabilities, the call for a more flexible regulatory environment continues to gain momentum among industry leaders.
