As the industry continues to grow, the development of Metaverse and web 3 is attracting South Korea’s attention. So far, the government has invested about $200 million in these areas. On the other hand, national authorities have been working hard to design effective regulatory frameworks, just as other jurisdictions around the world have introduced new cryptocurrency rules.
At the National Data Policy Conference on Wednesday, the Ministry of Science and Information and Communication Technology (MSIT) released new guidance on encryption policy to enable Metaverse’s rapid growth.
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Considering the need for a new regulatory framework for fast-growing Metaverse, OTT streaming organizations and autonomous vehicle platforms, the Agency has planned new rules. Citing concerns about the state’s Metaverse technology development, officials touted existing regulations as a stumbling block in the ecosystem to slow development.
Rough translation of press release reveals officials’ stance on proposed regulations read;
Establish guidelines for classification of game products and virtual worlds to achieve reasonable and consistent regulation and support the development of relevant laws (making special virtual world laws, etc.)
However, the designation of the old rule is still under discussion, winning the support of several committee members. On the other hand, Park Yoon-kyu, Director General of MSIT ICT Policy, pointed out supportive policies. He noted at the event;
We don’t make the mistake of regulating new services with existing laws.
MSIT Removes Legal Barriers to Metaverse Growth
Notably, South Korean law enforcement has blocked gaming platforms from running redeemable rewards programs. These rules also apply to blockchain-based companies, while NFTs are transferred as rewards in a distributed ledger-based gaming environment. Applying a similar policy to Metaverse would close the door to digital space gaming. That’s why MSIT officials are concerned about the implementation of new legislation to support the state’s million-dollar investment.
Nonetheless, Metaverse has developed a reward system in Korea implemented by SK Telecom’s Ifland virtual world. It allows specific users to liquidate their in-game rewards by spending loot online.
After the newly elected President of South Korea, Yoon Seok-yeol, came to power, he expressed his interest in digital assets and launched many developments and policies that are conducive to digital transformation.
MSIT’s positive attitude towards digital assets and its leading role in regulating the digital ecosystem in the coming days has opened the way for crypto enthusiasts to push for relevant regulations.
South Korean authorities step up efforts to crack down on bad actors
In addition to the country’s interest in Metaverse and blockchain technology, South Korean authorities have been working hard to crack down on cryptocurrency companies that facilitate cybercriminals and fraudsters.
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In this round, Do Kwon, founder and CEO of the now-defunct TerraLuna project, faces prosecution in South Korea. Prosecutors accused him of defrauding cryptocurrency investors without warning them about the risk that digital currencies Luna and USTC could plummet together. As a result, prosecutors have contacted authorities to cancel the passports of Terra’s CEO and employees.
Featured image from Pixabay and chart from TradingView.com