People Power Party Virtual Asset Special Committee Seminar Held
Professor Hwang Seok-jin Proposes Establishment of Digital Asset Committee
Formation of Digital Asset Association Also Discussed
Yoon Chang-hyun, Chairman of the People Power Party's Special Committee on Virtual Assets, is delivering the opening remarks at the seminar titled "Digital Asset Basic Act, Solutions to Overlapping Issues" on the 12th.
[Asia Economy Reporter Lee Jung-yoon] A proposal has emerged that a government agency should take charge as the control tower for the virtual currency industry under the Yoon Seok-yeol administration, along with the establishment of a private association to serve as a bridge between the public and private sectors.
The People Power Party's Special Committee on Virtual Assets hosted a seminar titled "Digital Asset Basic Act, Solutions to Overlapping Issues" on the 10th. On this day, Professor Hwang Seok-jin of Dongguk University's Graduate School of International Information Security pointed out that "there are limits to policies focused solely on regulation as the digital asset industry expands," and proposed the establishment of a provisional Digital Asset Committee. The Digital Asset Committee is expected to ▲ concretize a national vision leading the digital asset industry ▲ cultivate the foundation of the digital economy ▲ enhance investor protection and value improvement ▲ ensure legal and technical stability of the digital asset industry.
Professor Hwang also proposed the formation of a self-regulatory organization tentatively named the Korea Digital Asset Association, which would connect virtual currency operators and the government. The idea is to form a representative association where virtual currency operators and related companies join as full members, advisory firms and comprehensive financial companies as associate members, and virtual currency evaluators and listing review officials as special members. Through the Korea Digital Asset Association, it is expected to enable fair transactions and maintenance of business order among member companies, promote the sound development of the virtual currency industry and investor protection, and resolve confusion caused by the proliferation of related organizations and associations.
There were also opinions that strengthening regulations on virtual asset operators and allowing financial institutions to enter the virtual currency market are necessary. Lawyer Jeong Jae-wook of Juwon Law Firm argued that although virtual asset businesses operate under a reporting system, there are no requirements for capital, personnel, corporate status, soundness, or conflict of interest prevention systems. He further stated that compared to existing banks and financial investment firms, the criteria for rejecting reports are not stringent, and indirect investment in virtual assets through financial investment firms is not permitted, with only direct investment effectively allowed, placing domestic investors in a vulnerable position.
To address these issues, Lawyer Jeong urged the enactment of the Digital Asset Basic Act to establish regulations preventing conflicts of interest and behavioral norms for virtual asset operators. He also proposed institutionalizing indirect investment businesses and gradually allowing financial institutions to enter the virtual currency market to enhance soundness.
Additionally, the need for guidelines related to P2E (Play to Earn) and NFTs (Non-Fungible Tokens) was raised. Due to the Game Rating and Administration Committee's classification of the P2E genre as gambling under the Game Industry Act, game companies are unable to release games domestically. Lawyer Park Seong-won of Kang & Partners stated, "Instead of categorically banning P2E games as gambling, clear guidelines should be presented to promote industry development," adding, "A comprehensive review is needed to foster new businesses such as P2E games, NFT token-related businesses, and the metaverse."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
