Protecting Investors Through Legislation
Establishing a Digital Asset Ecosystem
Guaranteeing Institutional Recognition and Business Opportunities
Lee Jae-myung, the Democratic Party presidential candidate, is signing up for the virtual asset platform (Bithumb) ahead of the on-site meeting of the virtual asset exchange held at Upbit Lounge in Gangnam-gu, Seoul on the 19th. Photo by the National Assembly Press Photographers Group
[Asia Economy Reporter Jeon Jinyoung] Lee Jae-myung, the presidential candidate of the Democratic Party of Korea, announced on the 19th that he will promote the legalization of virtual assets through his virtual asset pledge. This means including virtual assets within the legal framework to protect investors, aiming to capture the 'coin supporters' vote.' In particular, like Yoon Seok-yeol, the presidential candidate of the People Power Party, this move is largely targeted at the main users of virtual assets, the 2030 generation.
On the day, Lee held a meeting with the CEOs of the four major virtual asset exchanges?Lee Seok-woo of Dunamu, Heo Baek-young of Bithumb, Cha Myung-hoon of Coinone, and Oh Se-jin of Korbit?as well as experts at Dunamu’s headquarters in Gangnam-gu, Seoul, and announced additional pledges following the tax deferral on virtual assets. The core points of the pledge are △ legalization of virtual assets △ consideration of allowing Initial Coin Offerings (ICO) △ consideration of issuing and offering Security Token Offerings (STO) △ support for building a digital asset ecosystem.
Regarding the legalization of virtual assets, Lee said, "We will institutionally recognize the virtual asset industry and guarantee various business opportunities," adding, "We will establish objective listing standards and make disclosure systems transparent." He further stated that after preparing sufficient safeguards to protect investors and prevent market disruption, he would allow virtual currency offerings and consider permitting the issuance of security tokens. He added, "We will actively support the establishment of a digital asset ecosystem that enables creative digital asset issuance, safe trading and storage, and investment risk diversification."
Currently, virtual assets are not subject to the Capital Markets Act, unlike other financial products, making legal protection difficult. This pledge aims to institutionally recognize virtual assets and the virtual asset industry through legalization, allowing various opportunities within the system. ICOs are not allowed domestically and have been continuously requested by the industry; they enable direct participation in coin trading without intermediaries. STOs, referring to security tokens, are also not yet legalized, and this pledge is interpreted as an intention to activate them. Lee said, "Listing foreign coins that our country does not officially issue causes a kind of national wealth outflow," and added, "It is necessary for the public to freely invest and increase their assets through ICOs."
Lee has actively sought to capture the coin supporters' vote by advocating for virtual asset tax deferral and raising deduction limits. He is also considering a method to recover development profits based on blockchain to prevent a second Daejang-dong scandal.
At the event, Lee even directly signed up for the virtual asset exchange 'Bithumb.' The Facebook screen showing Lee’s pledge of a 'one-year deferral of virtual asset taxation' was also issued as a Non-Fungible Token (NFT). The Democratic Party plans to auction the issued NFT and donate all proceeds.
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