“South Korean Exchanges Are in a State of Confusion”

The self-regulatory Korea Blockchain Association (KBA), has criticized the South Korean government for its “lack of guidance” – hitting back at suggestions that the country’s cryptocurrency exchanges are violating a code of conduct they agreed in December last year.

Kim Hwa-joon, vice chairman of the KBA, said, per media outlet TechHolic, “South Korean cryptocurrency exchanges are in a state of confusion because the government does not provide clear regulations. We introduced self-regulation as a stop-gap measure, in place of official regulations, while the government finalizes laws.”

As part of the self-regulatory measures, exchanges said they would refrain from “excessive marketing and advertising” campaigns and desist from adding new tokens to their platforms. In recent months, however, most of the country’s top exchanges have embarked on a number of high-profile advertising campaigns, and have added a whole slew of new currencies – drawing widespread criticism.

However, the KBA says the fault lies with the government, which earlier this year dropped its hard-line regulatory stance in favor of what critics have called “inaction.”

The KBA’s chairman, Jeon Jae-jin, said, per media outlet Herald Business, “I would like to strongly criticize the government for its vague cryptocurrency policy. The government needs to either take direct action itself or allow the KBA to do its own thing.”

The KBA counts 23 South Korean cryptocurrency exchanges among its members, and says it punishes violators of its code of conduct with suspension of membership, fines and other measures.