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  • Need to Establish Framework Act on Blockchain Industry Promotion

    Need to Establish Framework Act on Blockchain Industry Promotion

    -KITA, Lawmaker Hong Eui-rak and the Korea Blockchain Industry Promotion Association jointly proposed… to create an ecosystem for startups -


    The details of the Framework Act on Blockchain Industry Promotion that the Korea International Trade Association (Chairman, Kim Young-joo) and the Korea Blockchain Industry Promotion Association (Chairman, Kim Hyung-joo) jointly proposed and a lawmaker Hong Eui-rak is pushing legislation were unveiled at the National Assembly Hall on May 2.


    The Korea International Trade Association said, “We have concluded that in order for the blockchain industry to play its role as the game changer of the 4th industrial revolution, it is urgent to provide systematic support through the establishment of the framework act on promotion. Then, we held ‘A large conference for the promotion of the blockchain industry’ in cooperation with Hong Eui-rak, the Democratic Party member, and the Korea Blockchain Industry Promotion Association at the National Assembly Hall."


    The blockchain industry has been highlighted as a revolutionary technology that simultaneously provides reliability and efficiency in a hyper-connected economy in which all data is interconnected. However, it has been constantly pointed out that it is difficult to launch revolutionary blockchain startups in Korea due to uncertainty of laws and systems.


    This Framework Act on Blockchain Industry Promotion contains establishment of the foundation for blockchain industry (to stimulate R&D, to support start-ups, to foster professional manpower, and technical standardization, etc.) and facilitation of the use of blockchain technology (to acknowledge the validity of electronic documents in the block chain and to regulate the legal nature of smart contracts). In order to carry out those proposes, the act regulates to set up 'Strategy Committee for Blockchain Industry' as a legal system under the Prime Minister.


    An attorney Kim Kyeong-hwan said in the meeting as a presenter, "The framework act divides the blockchain industry into financial and non-financial sectors. Chairman of the Financial Services Commission and the Minister of Science and ICT will lead the promotion plans for each sector. As it also allows Initial Coin Offering (ICO) within the current legal boundaries, it is necessary to collect opinions from various fields during the legislative process."


    Park Chang-ki, chairman of the Korea Blockchain Industry Promotion Association, stressed in his keynote speech, "Korea needs to refrain unreasonable regulations on the blockchain industry and create a reasonable regulatory environment based on the principle of negative and post-regulation."


    Ahn Geun-bae, head of the Trade Policy Support Division at the Korea International Trade Association, said, ”The blockchain industry with  characteristics of fundamental technology, is expected to develop business models with a new paradigm in combination with artificial intelligence (AI), autonomous navigation, big data, bio, and smart city in the future.” He also stated, ”In Korea, it is essential to establish an ecosystem for blockchain startups through legal and institutional reforms as small and medium enterprises possess about ten times more blockchain related patents than big companies."

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