People Power Party Holds Legislative Forum on Enacting the Basic Act on the Virtual Asset Industry: "Legal Status Needed for Cryptocurrency Holders"

There Are Also Calls to Enact the Basic Act on the Virtual Asset Industry to Comprehensively Protect Investors and Foster the Industry

On the 1st, the People Power Party's Special Committee on Virtual Assets held a legislative forum titled "Legislative Discussion for the Enactment of a Proper Basic Act on the Virtual Asset Industry." (Provided by the Office of Assemblyman Yoon Chang-hyun)

[Asia Economy Reporter Gong Byung-sun] Experts have expressed the opinion that the legal status of cryptocurrency holders should be legally guaranteed to protect cryptocurrency investors.

On the 1st, the People Power Party's Special Committee on Virtual Assets held a legislative debate titled "Legislative Discussion for the Proper Enactment of the Basic Act on the Virtual Asset Industry" at the National Assembly main building. The debate was hosted by Yoon Chang-hyun, chairman of the People Power Party's Special Committee on Virtual Assets.

At the debate, it was pointed out that the legal status of cryptocurrency holders is more important than the definition of cryptocurrency. Kim Gap-rae, a research fellow at the Korea Capital Market Institute, stated, "Cryptocurrency is an intangible asset recognized for its property value and is subject to taxation, with many citizens engaging in large-scale transactions, so the legal status of holders must be legally protected," adding, "Since cryptocurrency holders indirectly hold assets through intermediaries, they need to be further protected from the bankruptcy of custodial institutions."

Researcher Kim also compared cryptocurrencies to securities. While securities investors are protected under systems such as the Capital Markets Act, cryptocurrency holders are left defenseless against bankruptcy risks. Furthermore, he added that an industry-specific law should be enacted to protect cryptocurrency holders.

There was also a call for the enactment of a Basic Act on the Virtual Asset Industry. Enacting a basic law rather than a special law would avoid bias and simultaneously encompass consumer protection and industry promotion. Park Sung-won, a lawyer and member of the People Power Party's Special Committee on Virtual Assets, said, "The five bills currently pending emphasize either promotion or consumer protection, so we aimed to avoid biased legislation and prepare a value-neutral basic law that supports the industry," adding, "The basic law will serve to provide grounds rather than directly regulate everything."

However, there were also criticisms that the basic law has shortcomings. Do Hyun-soo, CEO of Probit, emphasized, "If the basic law imposes entry regulations on the virtual asset industry, it is necessary to clearly define entry conditions and establish a binding act that mandates registration or approval once requirements are met," adding, "While there is an obligation to explain regarding the protection of virtual asset users, disclosure obligations are even more important."