South Korean Ministry for ICT Calls for Enactment of Special Metaverse Laws
The South Korean Ministry of Science and ICT (MSIT) has recommended the enactment of special metaverse laws because older regulations are currently stifling the growth of new ecosystems such as the metaverse and web3.
The MIST says it plans to shift from the imposition of traditional video gaming laws and issue new guidelines that will incentivize the growth of the metaverse.
South Korea is currently making robust moves to nurture Web3 and Metaverse ecosystems. The country has invested $200 million to create an in-house metaverse. Alongside this effort, MIST also states that older regulations are stifling the growth of new ecosystems.
The MIST issued the statement during the inaugural meeting of the National Data Policy stating that the ministry would “not make the mistake” of using existing laws to regulate a new service. Also under consideration are discussions to designate the metaverse as a video game.
The MIST is resolute that new industries such as the metaverse, OTT streaming platforms, and autonomous driving require the creation of new regulations. When it comes to the metaverse, MIST is expressing concerns that a lack of a legal and institutional basis is hampering industrial growth.
This is not the first time the issue is being broached in South Korea. On September 1, the country’s National Assembly expressed support for an official proposal to enact the Metaverse Industry Promotion Act that will support the Web3 industry.
This recommendation is also coming at a time when South Korea is cracking down on the figures behind the collapsed Terra stablecoin ecosystem.
According to South Korean prosecutors, Terraform Labs co-founder and CEO Do Kwon allegedly committed fraud on investors by issuing LUNA and USTV without telling investors of the danger of prices of both of these plummeting together.
South Korean prosecutors want to have Kwon’s and Terra employees’ passports revoked in light of these accusations.