[Hopes for the 22nd National Assembly] Embrace Bitcoin Now... 70% of Companies Say "Regulation Needed"

Companies Say "Institutionalization of Digital Assets Needed"
"Investor Protection First... Urgent Legislation Required"

Among the top 50 domestic companies, a significant number argued that South Korea should also embrace digital assets such as Bitcoin within the institutional framework. This reflects the view that, as an unstoppable trend, digital assets should not be left in a regulatory gray area but fully recognized and utilized.

According to a recent survey conducted by Asia Economy targeting 50 major domestic companies, 70% (35 companies) of the respondents answered that the institutionalization of digital assets is necessary. Not only financial companies directly related to the sector but also manufacturing companies mostly shared the same opinion. This is interpreted as a judgment that South Korea should not fall behind as digital assets are naturally being incorporated as assets worldwide.

When asked about the most important considerations in promoting the institutionalization of digital assets, companies cited "strengthening investor protection (38%, multiple responses)" as the top priority. They emphasized the need to clearly define the responsibilities of exchanges and sellers, similar to bank deposits, stocks in the capital market, and various derivatives, to protect investors. Following this, 22% stressed the necessity of legalizing virtual assets. More than half responded that establishing proper regulations should come first. Improving the convenience of virtual asset investment (12%) was also identified as a task to be addressed.

Both ruling and opposition parties have recognized these market demands and included them in their pledges for the 22nd general election. The Democratic Party of Korea pledged to allow spot exchange-traded funds (ETFs) based on virtual assets such as Bitcoin, which are currently banned from trading domestically. They also promised ▲ inclusion of virtual asset spot and futures ETFs in Individual Savings Accounts (ISA) ▲ allowing institutional investors to participate in the virtual asset market ▲ legalizing token securities issuance (STO). Reflecting the global trend, as the United States has already allowed Bitcoin spot ETFs incorporating Bitcoin into institutional financial assets, they intend to establish a taxation infrastructure and grow the market.

The People Power Party stated that the first step should be enacting a basic law on virtual assets and establishing a public taxation foundation. Since the taxation of virtual asset investment income, scheduled to be implemented from January next year, has not yet been fully legislated, making reasonable taxation difficult, they plan to revise related regulations first. Other proposals include ▲ establishing a dedicated virtual asset committee responsible for investor protection, disclosure, and evaluation ▲ promoting a standard disclosure system ▲ introducing virtual asset blind trusts ▲ gradually allowing virtual asset issuance (ICO).

Professor Jeong Yushin of Sogang University Business School explained, "Digital assets, especially STOs, can become a new means of corporate fundraising. Since funds are raised through tangible and intangible assets, and various specialized and derivative personnel are needed accordingly, policy considerations are necessary to transform even the labor market."