Kukhim Discusses Cryptocurrency Policies with US CFTC and EU Commission: "Not a Market Exclusive to Korea"

[Asia Economy Reporter Lee Jung-yoon] The ruling party, which is pushing for the enactment of the Digital Asset Basic Act, invited a standing commissioner of the U.S. Commodity Futures Trading Commission (CFTC) and an advisor from the European Union (EU) Executive Commission to discuss overseas cryptocurrency policies.

On the 11th, the People Power Party's Policy Committee and the Digital Asset Special Committee held a Korea-U.S.-EU Digital Asset Global Policy Roundtable at the National Assembly. Caroline Pham, standing commissioner of the U.S. CFTC, and Peter Kulstans, advisor to the EU Executive Commission, attended the meeting.

Yoon Chang-hyun, chairman of the People Power Party's Digital Asset Special Committee, explained, "At first, it was seen as not problematic, but over time, new agendas keep emerging," adding, "The Yoon Seok-yeol administration is promoting the Digital Asset Basic Act as a national agenda, but it is a very difficult task to determine how much should be included in the basic law and how the dedicated organization should be structured."

He continued, "In a changing market environment, we must note that this is not a market unique to Korea and carefully observe what policies are being prepared, implemented, and planned overseas," and said, "Issues such as Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), and the Metaverse should also be discussed within a regulatory framework in the digital asset market."

At the meeting, Pham, the U.S. CFTC standing commissioner, emphasized that establishing safeguards to ensure the integrity of the virtual asset market and protect general investors is the most important factor. He stated, "As the global market grows, it is necessary to develop strategies to manage risks effectively," and added, "We must create a shared vision for the future of the market together with private global participants."

He also said, "Because it is a global market, I believe clear and simple rules are necessary," emphasizing that digital assets are global assets requiring standardized regulations, and expressed hope for global cooperation and exchange with Korea and other countries.

Furthermore, he stressed practical solutions, saying, "I think it is important to find practical solutions," and added, "If existing laws or rules can be applied, they should be, and regulators and relevant agencies in the U.S. and other countries need to engage in extensive dialogue regarding the application of various laws and rules."

Peter Kulstans, advisor to the EU Executive Commission, introduced the EU’s virtual asset regulatory proposal, MiCA, as a legal comprehensive framework. He explained, "It is intended to provide legal certainty so that the virtual asset ecosystem can be established, financial markets can stabilize, investors can be protected, and market integrity can be secured."

Kulstans also said, "General virtual assets must include transparency requirements, but for stablecoins (virtual currencies designed to be pegged to fiat currencies), the applicable requirements are strict," and added, "After many negotiations and coordinating diverse opinions, a comprehensive agreement like MiCA was reached."

He further explained, "Europe is striving to promote virtual assets because, although they carry risks, they also have potential."

Financial authorities also expressed the need for global discussions related to virtual assets. Lee Myung-soon, Senior Deputy Governor of the Financial Supervisory Service, stated, "Despite differences between countries, there is a need to establish standard international criteria applicable to global digital asset transactions," and added, "The Financial Supervisory Service is actively participating in these discussions and frequently consulting with overseas supervisory agencies on individual issues."