Ripple's APAC Policy Director told about the balance between consumer protection and fostering innovation in the sector

Ripple’s APAC Policy Director told about the balance between consumer protection and fostering innovation in the sector

In a special article on the official website Ripple’s APAC Policy Director told about the balance between consumer protection and fostering innovation in the sector.

In a special article on the official website Ripple’s APAC Policy Director recently told about the balance between consumer protection and fostering innovation in the sector. Key points were as follows:

South Korea’s undeniable technological edge has firmly placed the country at the forefront of embracing new technology and innovations – from semiconductors and smartphones, to blockchain and digital assets. In fact, the Korea Financial Intelligence Unit (KoFIU) found that South Korea’s total market size for digital assets grew to USD 45.9 billion at the end of 2021, while the number of active users grew approximately 23% from 5.58 million in end-2021 to 6.9 million in the first half of 2022.
The growth of the sector has made it more imperative than ever for South Korean regulators and policymakers to establish regulatory clarity for digital assets, in order to ensure consumer protection and risk management requirements are addressed.
In a recent whitepaper, Ripple highlighted the need for regulatory changes and provided policy proposals to support innovation in South Korea’s digital assets sector. The paper detailed an approach for understanding the evolving blockchain and digital assets ecosystem, while recommending a policy framework for blockchain and digital assets in South Korea. An essential part of this policy framework is the need to adopt a clear taxonomy for digital assets aligned with global best practices, thereby providing a clear distinction between payment tokens, utility tokens, and security tokens.
To say the least, we can expect South Korean policymakers to continue devoting significant resources to regulating, understanding, and monitoring the digital asset space. Initial policy initiatives have shown thought towards balancing regulatory and consumer protection objectives, while fostering growth and innovation. As South Korea gears up to provide more regulatory clarity to its digital asset ecosystem, the country will only stand to reap the rewards of a more vibrant and inclusive digital economy — and further bolster its already world-renowned technological edge.