President Moon Jae-in’s Chief of Staff for Policy Jang Ha-sung is expected to resign soon. His resignation might raise the voices of the advocates for cryptocurrency and initial coin offering (ICO).
Jang has shown extreme skepticism on cryptocurrency and ICO. Under his leadership, few Blue House staff could suggest the positive role the ICO and cryptocurrency have on the economy.
Jang is an economist and monetarist who believes in the role of the central bank and is quite negative on the possibility that cryptocurrency would replace the legal tender in the future.
On Jan.12 this year, Justice Minister Park Sang-ki said a cryptocurrency is a gambling tool, and the cryptocurrency exchange should be shut down.
Justice Minister Park reportedly linked the cryptocurrency to a gambling tool after consulting with Chief of Staff for Policy Jang.
Jang’s departure would also reduce the voice of Financial Supervisory Commission Chairman Choi Jong-ku. Choi has cracked down on ICO and cryptocurrency exchanges.
Jung Tae-ho, senior presidential secretary for job creation, is reportedly a strong advocate for cryptocurrency and ICO. The Presidential Commission on the Fourth Industrial Revolution has been positive on regulating cryptocurrency for developing the blockchain industry. The Ministry of Science and ICT has accepted the launch of the Korea Blockchain Industry Promotion Association
The government will soon unveil its policy on cryptocurrency and ICO. It is still unclear whether the policy will focus either on regulation or promotion.
Government officials are in a no-win situation in cryptocurrency policy. The government has been lukewarm in allowing ICOs out of fear that gamblers, money launderers, fraudsters, and crime ring leaders abuse ICOs for illegal purposes. If the government continues to crack down on cryptocurrency, investors and blockchain producers argue that South Korea is behind other countries in using blockchain for industrial takeoff.
