Ripple, a blockchain-based digital payment network, has made a proposal for South Korea to make clear distinctions in cryptocurrencies between payment tokens, utility tokens, and security tokens, in a policy paper released on Tuesday.
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- Ripple’s policy paper says South Korea’s current definition of a “virtual asset” is fairly broad, as it covers “a digital token with economic value that is digitally tradable and transferable.”
- The paper, written in conjunction with GBC Korea and Oxford Metrica, also delves into cross-border payments using Ripple’s technology, and fostering digital asset innovation sandboxes in regulated environments.
- “We believe the policy recommendations outlined in this paper strike the right balance between providing regulatory clarity, while having a regulatory framework that’s forward-looking and flexible,” said Rahul Advani, policy director APAC at Ripple.
- South Korean regulators have already applied strict anti-money laundering and know-your-customer requirements for digital asset businesses, which left only four exchanges eligible for providing cash-to-crypto services.
- South Korea’s newly elected president Yoon Suk-yeol pledged to bring forth a new regulatory framework for blockchain and crypto to nurture the industry while safeguarding investors.
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