[Public Voices]The World Transformed by Digital Assets: Only Korea Remains Stagnant

Regulatory Debates Focused on Equity Ownership Restrictions
Contradict Global Trends

At Risk of Missing the Golden Window for Innovation

Financial Authorities Must Become Facilitators of Innovation

Upholding the Spirit of the Digit

Professor Seongmin Jeon, Department of Business Administration, Gachon University

The global e-commerce market stands at a major inflection point marked by the "software-ization of finance." Shopify, the global e-commerce platform, has partnered with the cryptocurrency exchange Coinbase to introduce a stablecoin payment system. Small business owners can now receive settlements in just a few seconds and pay only a 1% fee, without the need for complex foreign currency remittance procedures. This demonstrates that digital assets have evolved beyond being mere investment vehicles, becoming core infrastructure that maximizes efficiency in the real economy.

In the digital asset sector, South Korea is experiencing stagnation, falling short of its reputation as an "IT powerhouse." While changes are already underway-such as the installation of Tether exchange ATMs in major tourist destinations like Myeongdong and Namdaemun-delays in institutionalization have postponed the launch of related services and user benefits. The global first-mover advantage and industrial sovereignty that Korean companies ought to enjoy are being rapidly eroded by foreign operators.

For export-driven small and medium-sized enterprises, delays in overseas remittances and high fees are chronic problems. Large corporations can manage these costs through economies of scale, but SMEs inevitably suffer from structural disadvantages that erode profitability. For them, real-time payments using stablecoins are not just a way to reduce costs-they are a powerful tool to address the financial information asymmetry with large corporations. The tokenization of real-world assets (RWAs)-such as real estate and gold, which are low-liquidity assets-and the introduction of a won-based stablecoin are key to expanding the boundaries of the capital market. Through this, companies gain new channels for fundraising, and citizens can access new investment opportunities.

The most critical consequence of delayed digital asset institutionalization is not just the outflow of national wealth, but the subordination of financial platforms. The United States is already accelerating the race for supremacy by establishing global standards for digital finance through the "Genius Act," while Europe is doing so with the Markets in Crypto-Assets (MiCA) regulation. In contrast, South Korea is preoccupied with regulatory debates-such as equity ownership restrictions-that run counter to the global trend, thus missing the golden window for innovation.

While domestic operators are shackled by regulations, core users and high-value data are already crossing borders. If this continues, domestic exchanges will become stuck as simple platforms for won deposits and withdrawals, rather than leading platforms at the heart of the innovation ecosystem. The national tax base will weaken, and digital financial sovereignty will be handed over to large foreign capital.

The direction of the global market is clear. Instead of unconditional equity restrictions, the focus is shifting toward building trust in the market by strengthening major shareholder eligibility reviews and enhancing transparency in governance. As practiced in Japan and the European Union, appointing independent directors and enforcing strict post-hoc accountability to prevent conflicts of interest will be practical solutions.

Financial authorities must now move beyond the temptation of "convenient regulation" and become guides that support innovation. The true purpose of the Digital Asset Basic Act is to eliminate regulatory uncertainty and create a level playing field where domestic companies can compete globally without discrimination. Whether South Korea rises as a leader in digital finance or remains a peripheral consumer nation depends on the decisive policy choices made at this moment.

Professor Seongmin Jeon, Department of Business Administration, Gachon University

This content was produced with the assistance of AI translation services.