"Bitcoin to Surpass Apple and Google... Korea Should Introduce Virtual Asset ETFs"

Hashed and KODA Host 'Virtual Asset Legislative Proposal' Seminar

CEO Simon Kim: "Bitcoin to Threaten Gold... Will Surpass Apple and Google"

"Korea's Virtual Asset Regulations Lagging... Need for Second-Phase Legislation"

"Virtual Asset Spot ETF, a Global Trend... Necessary for Domestic Introduction"

With pro-virtual asset (cryptocurrency) Donald Trump winning the U.S. presidential election, there is a prevailing expectation that the clarity of virtual asset regulations will be established in the U.S. In Korea, although the first-phase law was established through the Virtual Asset User Protection Act last July, discussions on second-phase legislation are still far from complete.

On the 19th, Hashed, Hashed Open Research, and Korea Digital Asset (KODA) held a seminar at the Hashed Lounge in Gangnam-gu under the theme of 'Legislative Proposals for the Development and Innovation of the Virtual Asset Industry' to explore legislative alternatives for the development and competitiveness of the domestic virtual asset industry. The focus was particularly on the introduction of virtual asset ETFs and the participation of professional institutional investors to enhance the competitiveness of the domestic financial industry.

Bitcoin to Surpass Apple and Google... Need for Quick Second-Phase Legislation

The seminar began with an opening speech by Simon Kim, CEO of Hashed. Kim stated, "As of 2023, approximately 560 million people are participating in the virtual asset market," adding, "Moreover, various real assets such as real estate and artworks are being digitized and placed on the blockchain. In this situation, Korea's regulatory environment is significantly lagging behind."

Kim also emphasized that Bitcoin is an asset that threatens gold. He explained, "There are many predictions that Bitcoin will become the second most valuable asset after gold as early as next year," adding, "When comparing the gold ETF created by BlackRock with the Bitcoin ETF, there is an overwhelming institutional demand for Bitcoin ETFs that cannot be compared to gold ETFs."

In particular, Kim predicted, "Bitcoin will have a higher value than any corporation," and "it will surpass the stocks of major global companies like Apple and Google." He continued, "Major countries, including the U.S., need to issue new asset classes to change their broken balance sheets built on debt, and Bitcoin will be the answer," adding, "Key figures in the next U.S. administration are making such statements, and eventually, Bitcoin will reduce the debt ratio."

Following this, Senior Researcher Gaprae Kim from the Capital Market Research Institute discussed the outlook for the Trump administration's virtual asset policy and its impact on the domestic financial industry. Kim stated, "Under the Trump administration, the clarity of virtual asset regulations will be established through legislation.

He also noted, "Trump is opposed to CBDCs (Central Bank Digital Currencies) but is very proactive about stablecoins," diagnosing that "consequently, the pace of institutionalization of digital assets will accelerate."

Kim added, "Korea should closely monitor the U.S. dollar-centric currency policy focused on stablecoins by the new Trump administration and respond strategically," adding, "We also need to quickly implement second-phase legislation and establish a regulatory framework for stablecoins promptly."

Lack of Clarity in Domestic Virtual Asset Regulations... Need to Refer to Global Frameworks

In the subsequent session, speakers unanimously agreed on the need for clear regulations in the domestic virtual asset industry, including stablecoin regulations and the classification of virtual asset businesses.

Partner Attorney Shinae Park from DL Law Firm stated, "In Korea, there is a significant regulatory gap regarding the classification of stablecoins and virtual asset businesses," emphasizing the need to prepare regulations by referring to international frameworks like MiCA. The European 'Virtual Asset Law' MiCA provides requirements for stablecoin issuers, reserve assets, redemption policies, and guarantees of redemption rights, but such legislation is absent in Korea. The industry has also pointed out that the lack of clear definitions and regulations for virtual asset businesses acts as a barrier for new entrants.

Attorney Park also mentioned the necessity of organizing virtual asset taxation. He suggested, "For efficient virtual asset taxation, policy research is needed on areas that did not exist in the existing tax system, such as rewards given through block verification and airdrops." He also stated the need to strengthen the disclosure system in the virtual asset industry and regulate the contents of virtual asset whitepapers. Additionally, he called for specific regulations on government guidelines for virtual asset public offerings or listings and the role of self-regulatory organizations like DAXA.

Virtual Asset Spot ETF, a Global Trend... Necessary for Domestic Introduction

There was also a suggestion that Korea needs to introduce virtual asset exchange-traded funds (ETFs) in line with global trends.

Team Leader Yongjae Lee from Mirae Asset Securities stated, "Virtual assets have been recognized as a new asset class with the emergence of spot ETFs. Korea needs to establish policies that align with global trends," predicting that "allowing virtual asset ETFs domestically will have the effect of pioneering new businesses related to prime brokers and market makers."

He added, "Currently, Bitcoin ETFs play a role in broadening the investment base, but it is expected that various strategic ETFs (with diverse investment strategies) will emerge in the future," adding, "This will provide traditional finance with new growth engines."

Minseung Kang, Suhyun Lee, Bloomingbit Reporter minriver@bloomingbit.io