"Virtual Asset System Reform" Representative Lee Yong-woo Proposes Legislative Bill

Lee Yong-woo, a member of the Democratic Party of Korea, is holding a press conference on the 7th at the National Assembly to propose the "Virtual Asset Business Act." The core of the "Virtual Asset Business Act" is to protect investors by allowing compensation for damages and confiscation or recovery measures if unfair trading practices occur in the virtual currency industry, where investment damages are rapidly increasing. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Koo Chae-eun] On the 7th, Lee Yong-woo, a member of the Democratic Party of Korea, officially proposed a bill to clearly define virtual assets and establish the Virtual Asset Business Act to strongly protect users based on this definition.

During a press conference that morning, Rep. Lee stated, “Countries such as the United States, Japan, and the European Union (EU) have already established regulatory frameworks. We urgently need institutional arrangements to address hacking, market manipulation, transparent markets, and user protection in line with these developments.”

The bill defines virtual assets as intangible assets with economic value represented by electronic certificates that can be traded or transferred electronically. Virtual asset service providers must obtain approval from the Financial Services Commission, while virtual asset custody service providers and virtual asset wallet service providers must register with the Financial Services Commission.

Furthermore, to protect users, the bill prohibits unauthorized business operations, unregistered business activities, name lending, and unfair practices by virtual asset operators. It also imposes obligations on virtual asset operators to manage conflicts of interest, disclose whitepapers issued by issuers, comply with anti-money laundering regulations, and verify customer identities. Virtual asset deposits from users must be kept separate from the operator’s own assets, and operators are required to enter into insurance contracts or compensation agreements to protect users. Rep. Lee emphasized, “If the market operates on minimal safeguards, more advanced systems can be implemented.”

The bill was co-sponsored by Representatives Kim Seung-won, Kim Ju-young, Kim Tae-nyeon, Kim Han-jung, Noh Woong-rae, Min Byung-duk, Min Hyung-bae, Park Hong-geun, Song Jae-ho, Shin Jeong-hoon, Ahn Min-seok, Oh Young-hwan, Lee Kyu-min, Lee So-young, Lee Yong-bin, Lee Tan-hee, Jung Pil-mo, Hong Ki-won, and Hong Sung-guk (in alphabetical order).