Fair Trade Commission Yet to Legislate Standardized Agreement for Cryptocurrency Exchange Due to Absence of Fundamental Laws on Cryptocurrency

Nov 30, 2018

Although blockchain industry has been pushing for legislation of ‘standardized agreement for cryptocurrency exchange’, South Korean Government is putting on the brakes on its attempt by saying that it cannot establish a standardized agreement while there are not fundamental laws for cryptocurrency.
Because discussions regarding legislation of cryptocurrency are being idled, blockchain industry is worried about possible confusion and conflicts within consumers related to terms on cryptocurrency. Blockchain experts are suggesting voluntary restraints as a possible alternative.
According to industries, standardized agreement for cryptocurrency exchange developed by Korea Blockchain Association and Kim & Chang Law Firm in the middle of this year has yet to go through legislation procedure of Fair Trade Commission (FTC) for more than half of a year.
Whenever businesses or associations develop standardized agreement and request an evaluation from FTC, FTC finalizes on legislation after going through various opinions, agreement evaluation advisory committee, and small meetings. However, legislation procedure for standardized agreement for cryptocurrency exchange has been put on a hold even before a request for an evaluation was made as FTC has been taking negative stance towards it.
FTC believes that it is not appropriate to legislate standardized agreement when fundamental laws on cryptocurrency are not even established.
“Official request for an evaluation on standardized agreement for cryptocurrency exchange has not taken place yet.” said a representative for FTC. “It is not appropriate for us to legislate standardized agreement since direction for policies on cryptocurrency has not been established yet due to pending bills regarding cryptocurrency. Also, it is not necessary to legislate standardized agreement when relevant laws are established.”

Fair Trade Commission Yet to Legislate Standardized Agreement for Cryptocurrency Exchange Due to Absence of Fundamental Laws on Cryptocurrency

Korea Blockchain Association has decided to temporarily postpone legislation process of standardized agreement. On the other hand, relevant markets are saying they need standardized agreement to reduce amount of confusion between cryptocurrency exchange and consumers.
“We are planning to continue legislation process while looking at relevant situations by ear.” said a representative for Korea Blockchain Association.
Relevant industries are worried about possible confusion that may come from absence of standardized agreement. They are pointing out the fact that confusion and conflicts will be inevitable since cryptocurrency exchanges are going by their own terms and conditions. Actually, FTC exposed 14 unfair terms and conditions such as ‘unfair terms on limited withdrawal and deposit’ from 12 cryptocurrency exchanges in last April.
Relevant markets are starting to become impatient as discussions about legislation of cryptocurrency are going nowhere.
Although Jung Tae-ok (special bill regarding virtual currency industry), who is not a member of a party, and Jung Byung-kook (legal bill regarding cryptocurrency transaction), who is a member of BAREUNMIRAE Party, motioned bills regarding cryptocurrency, there has yet to be a significant process within The National Assembly.
Experts suggest relevant industries to operate fair terms and conditions in a form of voluntary restraint and push for legislation of standardized agreement when legislation is finalized.
“It is possible that FTC is left with no choice since cryptocurrency is not legalized yet.” said Director Jung Yoo-shin of Sogang University’s Graduate School of Management of Technology. “Another way for relevant industries is for them to apply voluntary restraint with Korea Blockchain Association at the center and push for legislation of standardized agreement after gaining trusts from markets.”
Staff Reporter Yoo, Seonil | ysi@etnews.com

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