"Regulation by Non-Regulation: Blockchain Industry Must Break the Mold" ... Hong Eunpyo, New President of the Blockchain Law Association

Published 29 Apr.2025 07:05(KST)

"In Korean society, blockchain is still regarded as 'gambling.' Even though it is not prohibited by law, the industry has shrunk, and talented individuals have left for overseas. It is time to break out of this mold."

Hong Eunpyo (53, Judicial Research and Training Institute class 34), attorney at Bae, Kim & Lee LLC and the newly inaugurated second president of the Blockchain Law Association, expressed concern over the cynical perception of crypto assets and the blockchain industry in Korean society.

Hong Eunpyo, New President of the Blockchain Law Association. Legal Newspaper

After serving as a judge for 20 years, including as a chief researcher at the Supreme Court, he was first exposed to blockchain during his studies at Columbia University in the United States. However, upon returning to Korea, he faced a starkly different reality. Instead of focusing on potential, the prevailing logic was regulation; instead of looking to the future, the emphasis was on suppression.

Hong emphasizes that blockchain technology should be seen not merely as a speculative tool, but as a key to opening a new economic order. He also expressed his ambition for the association to serve as a hub for law and policy at the center of this transformation.

The following is a Q&A.

- What are your thoughts on taking office and your plans for running the association?

The Blockchain Law Association was first established in 2018, and at that time, it was a very active organization leading the discussions. That period saw the full-scale introduction of blockchain and Bitcoin to Korea, with a rapid increase in investment and interest. Since there were few organizations leading institutional or legal discussions, the association became a focal point for diverse debates. However, as time passed, the blockchain industry in Korea somewhat stagnated, and the association's activities also became less vibrant. My first goal upon taking office as president is to revitalize the association. There are many talented individuals within the association, but their energy is dispersed. Through the association, I want to bring together this dispersed energy and enable the association to serve as a hub for law and policy.

- How is blockchain perceived in our society?

I believe the biggest problem facing the domestic blockchain industry is the government's negative perception of new technology. There is what is called 'shadow regulation,' which imposes practical disadvantages even in the absence of explicit regulations. For example, there are no clear prohibitions in law, but corporations are prevented from purchasing crypto assets, and exchanges are not allowed to freely transact with banks, which effectively suppresses industry development. In such an environment, it is difficult for new technologies to advance. The United States is attempting to use crypto assets to supplement its own financial system, but we are still stuck in an overly negative mindset. I think it is time to accept the positive aspects of the technology and consider ways to socially embrace its potential. Going forward, I hope to introduce global discussions through international seminars and contribute to shifting domestic perceptions.

- The United States is actively discussing stablecoin legislation.

This was also a topic at the first seminar after I took office as president. Many analysts believe the United States is encouraging stablecoins as a strategy to increase demand for its own government bonds. Stablecoins are digital assets pegged to the US dollar, and US short-term Treasury bonds are used as collateral. This can have the effect of boosting demand for government bonds in the short term. In this way, the United States is moving to utilize crypto assets for its own national interests, rather than suppressing them. Now, we also need to engage in in-depth discussions about what meaning a Korean-style stablecoin could have.

- What first drew you to blockchain technology?

Initially, I became interested in new technologies and the law while studying IT law and software-related legislation as part of the Korea Information Law Association. Then, six years ago, while serving as a judge, I had the opportunity to study abroad at Columbia University in the United States, where I attended classes by Professor Eben Moglen. He is a leader of the free software movement, and through his discussions on whether blockchain could serve as a check on centralized data systems, I was greatly inspired. After returning to Korea, I co-founded the Blockchain Law Association and began to research the field in earnest.

- How far does the potential of blockchain extend?

Blockchain technology is not limited to finance. Bitcoin, for example, maximizes security and serves as digital gold, while Ethereum incorporates computing functions, offering limitless possibilities. Although blockchain is currently mostly connected to finance, it can be applied in various fields in the future, such as artificial intelligence and content creation. More important than one might think is one's mindset. It is essential to consider how society will embrace and utilize this technology.

An Jaemyung, Legal Newspaper Reporter