Oh Se-hoon: Virtual Assets Should Be 'Nurtured' Not 'Regulated'

"Korea Has Growth Potential in Virtual Assets"

Seoul Mayor Oh Se-hoon, who has been making continuous remarks about economic growth, has now argued that virtual asset regulations should be removed and the industry should be fostered.

On the 5th, Mayor Oh stated on Facebook, "Korea possesses strong ICT infrastructure and a high rate of digital financial usage, and the virtual asset market also has sufficient growth potential in terms of liquidity and technological capability," adding, "It is now time to approach this from a perspective of 'fostering' rather than 'regulating'."

Yonhap News

He viewed Korea as having a conservative attitude toward virtual assets. Mayor Oh said, "While countries around the world are embracing virtual assets as a core of financial innovation, Korea still remains in a conservative regulatory stance," and pointed out, "Maintaining such an attitude amid the rapidly changing global financial paradigm is a path to losing competitiveness."

He also referred to overseas cases. Mayor Oh said, "If existing policies have focused on user protection, now active support for industrial development is necessary," and added, "Just as the United States and Europe have introduced virtual asset ETFs and allowed institutional investors to participate in the market to grow it, Korea must also establish an institutional foundation to link virtual assets with the real economy."

Specifically, he proposed creating a 'Virtual Asset Innovation Fund' and enacting a 'Virtual Asset Basic Act.' Mayor Oh explained, "The Virtual Asset Innovation Fund would be jointly established by the government and the private sector to invest in blockchain and virtual asset industries, aiming to foster new technologies and strengthen global competitiveness."

He continued, "Above all, to secure competitiveness in the global financial market, institutional arrangements at the level of advanced countries are essential," and said, "To this end, the 'Virtual Asset Basic Act' should be enacted to adopt systems allowed in advanced countries domestically, such as virtual asset ETFs, corporate trading, and token securities (STO)." He further explained, "Through this, virtual assets can be established not merely as speculative targets but as a pillar of regulated finance, bringing innovation and trust to the overall financial market."

Mayor Oh emphasized, "It is now time to recognize virtual assets as a new growth engine and actively foster them," adding, "Through tax system reform, enactment of the Financial Innovation Promotion Act, and institutional support, a practical policy shift is needed so that Korea can leap forward as the hub of Asian digital finance."