South Korea’s Ministry of Science and ICT (MSIT), announced plans to abandon the imposing of traditional video gaming laws onto the Metaverse. Instead, the ministry issued new guidelines to encourage the growth of the budding ecosystem.
The $200 million South Korean investment in the creation of an in-house Metaverse is evidence of South Korea’s interest to gain Web3 and the Metaverse ecologies. Parallel to this effort, MSIT recognized that older regulations can be a deterrent for the growth of new ecosystems.
MSIT stated at the National Data Policy committee’s first meeting that they would not make the mistake “of regulating a new service under existing law.” However discussions about the Metaverse being a videogame are still open.
The ministry determined that new industries, such as the Metaverse and autonomous driving, require the creation of new regulations. MSIT expressed concern about the Metaverse and said that it could hinder industrial growth because of a lack in legal and institutional support. The press release, which was a rough translation, read:
“Establish guidelines to classify game products and metaverses in order to support rational and consistent regulation, and support the enactment or special metaverse laws. )”
On Sept. 1, the National Assembly supported a proposal to enact the Metaverse Industry Promotion Act, which would support the Web3 sector.
Related: South Korea issues an arrest warrant for Terra founder Do Kwon
South Korean authorities continue to crack down on Terra ecosystem managers, despite their support for the development of new technologies.
South Korean prosecutors allege that Do Kwon (the co-founder and CEO) of Terraform Labs allegedly defrauded investors. Do Kwon is accused of issuing LUNA, USTC, and not informing investors about the possibility that both their prices could plummet.
The prosecutors applied to the authorities to cancel Kwon’s passport and those of other Terra employees.