Ruling Party and Government Review Virtual Asset Registration and Licensing System... "Relief Is Difficult"

Yoo Dong-su, head of the Virtual Assets Task Force of the Democratic Party of Korea, is delivering a greeting at the 1st meeting of the Virtual Assets Task Force held at the National Assembly on the 23rd. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Park Cheol-eung] The Democratic Party of Korea and the government are considering implementing a registration or licensing system for virtual asset trading businesses.

On the 23rd, Yoo Dong-soo, head of the Democratic Party's Virtual Asset Task Force (TF), held the first meeting with the government and stated, "We asked the government to thoroughly review the registration or licensing bill and clarify their position," adding, "The United States and Japan essentially have registration systems or laws equivalent to licensing systems. We need to consider similar measures."

This move comes as concerns have grown following the Bank of Korea's recent Financial Stability Report, which identified virtual assets as potential risk factors to the financial system, prompting the government and ruling party to actively prepare countermeasures.

Yoo said, "We cannot delay any longer. We need to establish detailed laws and systems to protect virtual asset users," referring to a virtual asset business bill proposed by fellow party member Lee Yong-woo. The bill requires related businesses to obtain approval from the Financial Services Commission or register, and imposes disclosure obligations.

Yoo emphasized, "Mandating the issuance of white papers for ICO (Initial Coin Offering) registration is very significant," adding, "Although not finalized, at least such a law should allow verification of contents before transactions. This verification process could help distinguish the good from the bad."

Regarding remedies for investment damages, he said, "It seems difficult. Since investments are made under personal responsibility, it is appropriate for individuals to bear that responsibility," and added, "We must strongly crack down on fraud or illegal pyramid schemes."