Ripple Proposes Regulatory Clarity in South Korea’s Crypto Distinction, Donates $500,000 in XRP To Ukraine

Ripple Proposes Regulatory Clarity in South Korea’s Crypto Distinction, Donates $500,000 in XRP To Kyiv.

Fintech company Ripple is requesting that the South Korean financial watchdog establish clearer regulations that will help distinguish cryptocurrencies between utility tokens, payment tokens, and security tokens. 

The policy paper was written in partnership with Oxford Metrica and GBC Korea.

In a policy paper recommendation, Ripple noted that South Korea’s current virtual regulation is broad, covering digital currency with economic value that can be traded digitally. 

Ripple also discussed the possibility of using its technology RippleNET to foster digital asset innovations in regulated environments. 

Rahul Advani, policy director at Ripple, said in the paper:

“We believe the policy recommendations outlined in this paper strike the right balance between providing regulatory clarity while having a regulatory framework that’s forward-looking and flexible.” 

Plans to Avoid Another SEC Drama

Understandably, Ripple is trying to avoid some of the issues it is having with the United States Securities and Exchange Commission (SEC), which charged the blockchain company in December 2020 for breaching its securities law. 

The SEC lawsuit has recorded several twists since it began, with the case expected to end before November 18, 2022. 

Ripple Makes XRP Donations to Ukraine

Meanwhile, despite Ripple’s ongoing legal battle with the securities agency, the fintech company has continued to throw its weight behind Ukraine, which is still under attack by Russian forces. 

Despite supporting various humanitarian agencies helping Ukraine citizens to ameliorate the negative impact of the war with the sum of $1 million this month, Ripple has also donated $500,000 in XRP to the Kyiv School of Economics to provide food and medicine to Ukrainians in need.

We've donated $500k – in XRP – to @KyivSchool’s humanitarian aid campaign, which will help provide first aid, food and medicine to Ukrainians in need. If you are able, consider donating via this XRP address: rGJ9RnJpE18aPtpfWFeWzRSDrodJSpBNHn

Learn more: https://t.co/7SmMX0b0wn https://t.co/qpo5mf1rij

— Ripple (@Ripple) March 15, 2022

Korea’s Cryptocurrency Regulation

South Korea is one of the countries that has established regulations for digital currencies within its jurisdiction. 

Some of the efforts by the Korean government on the country’s digital currency include a strict anti-money laundering law, requiring cryptocurrency investors to supply several personal information in line with the Know-Your-Customer (KYC) requirements. 

Since 2020, the government has made moves to levy a whopping 20% tax on cryptocurrency gains. However, the initiative was postponed late last year, as the ruling government at the time tried to solicit votes from millennial crypto traders. 

Following the widespread adoption of cryptocurrencies in Korea, citizens of the country successfully voted in a crypto-friendly president Yoon Suk-yeol. 

President Suk-yeol disclosed that his administration is working round the clock to establish a new crypto regulatory framework that will foster growth in the industry while protecting investors.