Delays in Token Securities Legislation Cause Industry Difficulties... Min Byung-deok "Will Push for Legislation"

Min Byung-deok, Member of the Democratic Party of Korea

Token Securities (STO) Legislation Seminar Held

Industry "Facing Business Difficulties Due to Delayed Legislation"

Min Byung-deok "Will Push Forward Quickly"

Amid delays in the legislation of Token Securities (STO), experts from the virtual asset (cryptocurrency) industry, politics, and academia gathered to discuss the promotion of the bill.

On the 25th, a seminar was held at the 3rd Seminar Room of the National Assembly Members' Office Building in Yeouido, Seoul, under the theme 'What is the Problem with Token Securities Legislation?' Co-hosted by Representative Min Byung-deok, the seminar was held to gather voices from the token securities industry and obtain policy advice.

Before the event, Representative Min expressed his determination in his opening speech, stating, "The token securities bill is an essential bill that needs to be processed more urgently than the Digital Asset Basic Act," and "Through this seminar, we will listen to voices from the field and build a more effective foundation for the token securities industry."

Industry "Urgent Need for Legislation and System Improvement"

Industry officials participating in the seminar unanimously expressed their difficulties due to the delay in discussions on token securities legislation and appealed for the need to refine the bill.

Jo Chan-sik, CEO of Pumbl, said, "We have been continuing our business since being designated as an innovative financial service provider in 2019. However, as the token securities legislation continues to be delayed, related companies are seeing cumulative losses ranging from billions to hundreds of billions," and "We need to achieve industrial development through prompt legislative refinement."

Ryu Chang-bo, team leader at NH Nonghyup Bank, said, "In 2022, we signed a Memorandum of Understanding (MOU) with an art piece investment company and currently provide separate custody services for investment funds to nine investment contract securities operators. Despite launching a mainnet with faith in the token securities institutionalization, we are still facing business difficulties due to the lack of related regulations," he said.

He also pointed out the limitations of the current token securities bill. He said, "The current token securities bill is a domestic bill. It is difficult to attract funds from foreign investors who want to invest domestically," and "Given the delay in the bill's enactment, it is also worth considering a bill that can utilize the global financial market."

Advice on the method of amending the bill was also given. Park Hyo-jin, CEO of Sejong DX, explained, "Our country is centered on statutory law. We are using a method of creating new bills by partially amending existing laws," and "Such a method of legislation may confine the innovation of blockchain within existing financial regulations." He added, "For token securities-related bills, it is appropriate to either create entirely new legislation like Germany and Switzerland or consider a 'sandbox' system of 'business first, then institutional establishment' like the United States," and "In such cases, the value of token securities can be more highlighted."

Min Byung-deok "Speed is of the Essence for Token Securities Legislation... Will Push Forward"

Representative Min Byung-deok emphasized that he would quickly push for the legislation of token securities to resolve industry difficulties.

Representative Min said, "Currently, the Financial Services Commission and the National Assembly's Political Affairs Committee do not recognize the urgency of token securities legislation," and "Those involved in related businesses in reality are in a very urgent situation. Urgent laws can be enacted within a week," he said. He continued, "I will push for the rapid enactment of the token securities bill by gathering opinions from the industry."

He also emphasized the need for industry voices for the rapid introduction of the system. Representative Min said, "The industry does not have the authority to make laws, and lawmakers with legislative authority are not well-versed in technology, delaying legislation," and "If the industry expresses more opinions through participation in meetings, it will greatly help in persuasion," he said.