The Democratic Party Holds Meeting with Virtual Asset Stakeholders... "Will Establish the Digital Asset Basic Act"

Aiming to Resolve Regulatory Uncertainty and Strengthen User Protection
Detailed Classification of Virtual Asset Businesses and New Business Activity Regulations
Introduction of Virtual Asset Distribution and Disclosure Systems Comparable to the Capital Market
Zero Tolerance and Strict Punishment for Unfair Trading Practices

On the 7th, the government and the People Power Party agreed to fully revise the Act on the Protection of Virtual Asset Users (Virtual Asset Act) to establish the Digital Asset Basic Act. In addition to the current Virtual Asset Act's provisions on deposit protection and punishment for unfair trading, the new law aims to resolve regulatory uncertainties in the virtual asset market by subdividing virtual asset business classifications, establishing regulations on business activities, and introducing virtual asset distribution and disclosure systems comparable to those in the capital market, thereby strengthening user protection.

Kim Sang-hoon, the Policy Committee Chair of the People Power Party, announced after holding a private-government-party meeting on "Policy Tasks for the Sound Development of the Virtual Asset Market" at the National Assembly that they will push forward the Digital Asset Basic Act containing these provisions. The Basic Act will also include establishing a regulatory framework for stablecoins and the establishment of a self-regulatory organization.

Lee Bok-hyun, Governor of the Financial Supervisory Service, is speaking at the "Policy Tasks for the Sound Development of the Virtual Asset Market" meeting held at the National Assembly on the 7th. 2025.3.7 Photo by Kim Hyun-min

This meeting was arranged to keep pace with major countries worldwide, including the United States under the Trump administration, which are advancing policies related to virtual asset reserves and related transactions. Regarding this, Chair Kim stated, "We will continuously review whether improvements are needed in current regulations and practices from the perspectives of global consistency and user convenience," and added, "We plan to accelerate follow-up measures such as preparing guidelines for the participation of non-profit corporations and listed companies in the virtual asset market."

The government also plans to actively support legislative amendments to the Capital Markets Act and the Electronic Securities Act to improve the Security Token Offering (STO) system in line with the global trend of tokenization of financial products. Additionally, it will monitor international trends in virtual asset spot Exchange-Traded Funds (ETFs) and review the establishment of related infrastructure and legal improvements in futures markets and other areas. Chair Kim introduced, "The government will also form a task force (TF) to respond to user inconveniences and competition restrictions raised in the field."

Regarding the recent spread of unfair trading practices in the virtual asset market, a zero-tolerance policy will be enforced with strict punishment. The Financial Supervisory Service will conduct a "thematic virtual asset investigation" and significantly strengthen its investigative capabilities by improving the detection system for abnormal transactions at exchanges and advancing trade analysis systems. Chair Kim emphasized, "The private sector, party, and government will work together to continuously identify and improve unreasonable regulations and practices, and actively promote the swift processing of legal amendments for institutional improvements."

Attending the meeting were Kwon Seong-dong, the floor leader of the People Power Party; Chair Kim; Yoon Han-hong, the chairman of the National Assembly's Political Affairs Committee; Kim Byung-hwan, chairman of the Financial Services Commission; and Lee Bok-hyun, head of the Financial Supervisory Service. From the private sector, attendees included Kim Hyung-nyeon, vice chairman of Dunamu; Oh Se-jin, CEO of Korbit; Lee Jae-won, CEO of Bithumb; Cha Myung-hoon, CEO of Coinone; Cho Jin-seok, CEO of KODA; and Kim Gap-rae, Ph.D. at the Korea Capital Market Institute.