By Shelly Melancon (Switzerland)
Cryptocurrency adoption in South Korea has been unprecedented as the industry has witnessed steady growth over the past few years. The South Korean police’s willingness to accept fines for digital assets is a new development that has made the headlines.
Following a successful trial, traffic offenders can pay fines to the police using cryptocurrency. Reports indicate that the police would now be able to deduct penalties from the crypto wallets of offenders directly. However, the program has taken a while to make the news.
The government designated Gunpo, a town of roughly 260,000 residents, to carry out the pilot test at the beginning of the year.
Police Records Show 88% Success with New Policy
Multiple local news outlets reported that the Korean police had achieved modest success with the new method. Over the past six months, the law enforcement agency has had an impressive 88% success rate.
The policy has accumulated $668,000 in fines. Meanwhile, the penalties for delinquent offenses are roughly $759 worth of virtual assets. However, the police noted that crypto payment is not compulsory.
If an offender’s account balance cannot cover the fine, then using other means is acceptable. Meanwhile, reports also revealed that the amount generated in fines had surpassed those of the past three years.
Also read:On a broader scale, the news coming from Korea is a welcome development, considering how government agencies are making efforts to integrate crypto payments.
The industry needs more such initiatives from public and private institutions to accelerate the expansion of digital assets. As more government establishments implement crypto payment policies, digital assets will become part of the payment in the future.
South Korean Crypto Sector Spiked Over the Years
Last year was suitable for the Korean crypto sector as the market recorded a tremendous growth rate. The market is now inching closer to achieving a market valuation of $45 billion. Interestingly, the country is one of the world’s most active nations regarding crypto transactions. At the end of 2021, South Korea has 5.58 million active crypto holders, representing 10% of the country’s population.
Moreover, the digital asset space is booming but also facing some hurdles due to regulatory constraints. Bithumb, Coinone, Gopax, Upbit, and Korbit dominate the Korean crypto industry. Due to their inability to meet partnership requirements from government agencies, foreign crypto exchanges are finding it challenging to play their part.
However, the collapse of the Terra UST stablecoin has opened another chapter for the booming virtual asset industry. Korean regulations have tightened their grip on the crypto industry more than before.
Financial authorities are speeding up the process of enacting new guidelines to ensure compliance from exchanges in the country. More importantly, the government focuses on consumer protection to shield investors from market volatility.
All crypto trading platforms have delisted Luna from their crypto trading list. As a result, the financial regulator began a strict crackdown and investigations into some crypto exchanges.
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