A Critical Move Toward Securing Web3

• Web3’s decentralized model offers global collaboration, surpassing traditional corporations.
• Ki Young Ju highlights regulation as key to fostering trust and responsible Web3 growth.
• South Korea enforces strict crypto laws to combat fraud, protecting investors and markets.

Ki Young Ju, the founder of CryptoQuant, believes Web3 has the potential to transform global collaboration on a scale surpassing even Google.

He argued that with the right regulations in place, Web3 protocols can create a trusted ecosystem where millions can participate and benefit from tokenized incentives. But, he cautions that government inaction, particularly in key regions like South Korea, could hinder Web3’s growth and adoption.

Ki Young Ju acknowledged scams in crypto are a concern but believed proper regulation can make Web3 a trusted ecosystem. He stressed on government supervision and smart policies being crucial for its growth. Without political interest, especially in places like South Korea, regulatory progress may slow, delaying broader adoption.

Regulation: The Key to Responsible Growth

Ki Young Ju explained that while many decentralized projects have struggled, the failures do not reflect a fundamental flaw in the concept. Instead, early participants often profit significantly, leading to complacency, while later entrants face diminishing rewards.

He also noted that achieving the right balance in decentralization is crucial. Full decentralization is not always necessary, as the key goal is to maximize individual self-interest in alignment with capitalist principles. In this exploratory phase, regulators must carefully craft rules that encourage innovation while protecting participants from exploitation.

Collaboration over the internet through decentralized platforms like Web3 offers unprecedented opportunities. Ki Young Ju pointed out that a platform like Wikipedia could potentially operate more efficiently in a decentralized manner, as demonstrated by the Everipedia project.

South Korea Takes Action Against Crypto Crime

South Korea has moved toward regulating the booming crypto market within the region. It was earlier reported that the Financial Supervisory Service (FSS) implemented a zero-tolerance policy to combat unfair trading practices. FSS Governor Lee Hyun stressed the importance of monitoring market fluctuations and enforcing strict regulations to protect investors from fraud.

Read also: South Korea’s FSS Gets Tough on Crypto Crime

In addition, South Korean prosecutors plan to launch a new joint crypto-crime investigation unit by next spring. This division will work with domestic and international bodies, aiming to address crypto-related crimes more effectively. The unit will also focus on countering threats from groups like the Lazarus Group, known for their involvement in crypto theft.