South Korea’s Ministry of Science and ICT (MSIT) has revealed its intention to move away from imposing traditional video game laws on the metaverse. Instead, the ministry decided to issue new guidelines to encourage the growth of the fledgling ecosystem.
South Korea’s interest in collecting Web3 and Metaverse ecosystems is evidenced by the $200 million investment it has made in creating an internal Metaverse. Along with this effort, MSIT has identified that imposing older regulations has a chilling effect on the growth of new ecosystems.
At the first National Data Policy Committee meeting, MSIT noted that “we will not make the mistake of regulating a new service with existing law.” However, discussions around the designation of the Metaverse as a video game are still current.
The ministry has decided that new industries – including the Metaverse, self-driving and OTT streaming platforms – require the formation of new regulations. With respect to the Metaverse, the MSIT expressed concern about hampering industrial growth due to a lack of legal and institutional basis. Revealing the plan, a rough translation of the press release read:
“Establish guidelines for the classification of game products and metaverses for rational and consistent regulation and support for the enactment of related laws (enactment of special laws on metaverses, etc.)”
Previously, on September 1, members of the National Assembly supported an official proposal to enact the Metaverse Industry Promotion Act to support the Web3 industry.
Related: South Korea issues arrest warrant for Terra founder Do Kwon
While supporting the growth of new technologies, South Korean authorities continue their crackdown on those who run the Terra ecosystem.
South Korean prosecutors claim that Do Kwon, the co-founder and CEO of Terraform Labs, allegedly defrauded investors by issuing LUNA and USTC without warning investors of the danger that the price of the two could fall together.
As a result, prosecutors asked authorities to revoke the passports of Kwon and other Terra employees.