"Institutionalization of Digital Assets: Speed is Key"... KBIPA Digital Asset TF Launched

The Korea Blockchain Industry Promotion Association (KBIPA) has launched a Digital Asset Task Force (TF). As discussions on enacting the Basic Digital Asset Act enter full swing, a practical consultative body connecting the industry and the legislative field has begun full-scale operation.

On the 7th, the KBIPA announced that it had held the launch ceremony for the 'KBIPA Digital Asset TF for the Promotion of the Digital Asset Industry' at the Grand Auditorium on B1 of the National Assembly Library and would commence team-based activities to analyze the impact related bills will have on the industry and to reflect the opinions of the industry in the legislative process.

The launch ceremony was attended by major figures, including Kim Hyung-joo, Chairman of KBIPA, and legislators Shin Sung-bum, Min Byung-duk, and Park Jung-ha. The National Assembly agreed on the urgent need for legislation and pledged to play an active role in revitalizing the industry.

The TF is organized into four main groups focusing on key issues, such as stablecoins, tokenized securities, digital assets (cryptocurrency) spot ETFs, and legislative support. It brings together digital asset businesses, tech enterprises, legal and accounting experts, academics, and finance professionals. The TF will operate until enactment of the Basic Digital Asset Act is complete, methodically advancing the process step by step, from issue identification and discussion to policy proposals and external communication.

In a welcome address, Kim Hyung-joo, Chairman of the Korea Blockchain Industry Promotion Association, stated, "The Basic Digital Asset Act is an essential foundation for achieving both investor protection and industrial innovation in harmony," and added, "With this TF launch, I hope the government, National Assembly, and industry will work closely to help South Korea emerge as a global leader in digital finance."

Lee Hak-young, Vice Speaker of the National Assembly, emphasized in a video congratulatory message, "The Basic Digital Asset Act is a core legislative task for healthy development of the industry ecosystem," adding, "I hope this TF will serve as a bridge between the National Assembly and the industry, making a practical contribution to the legislative design." He went on to say, "I expect that through lively, free discussion among participants, substantive and constructive policy proposals will be produced and actively reflected in legislation by the National Assembly."

Koo Yoon-cheol, Deputy Prime Minister and Minister of Economy and Finance, stated, "Digital assets are fundamentally changing the paradigms of the economy and society," and added, "The government will also strive to promote regulatory innovation and expand infrastructure so that private-sector creativity and technological capability can thrive." He continued, "The Digital Asset TF is expected to contribute to healthy growth and development of the digital asset industry and serve as a bridge for public-private policy communication," and added, "The government will continue to listen to the industry and provide ongoing policy support to create a healthy and sustainable digital asset industry ecosystem."

Min Byung-duk, lawmaker from the Democratic Party of Korea, stressed, "When it comes to digital assets, speed is the issue, not the direction," and said, "A won-based stablecoin is not just a technical choice but a strategic means to safeguard financial sovereignty and needs to be adopted at the national level." He added, "The digital asset industry should not be regarded as a peripheral experiment but recognized as a national strategic industry, and the National Assembly will support this."

"Speed is Key"... Active Discussions on Institutionalizing Stablecoins and Digital Asset ETFs

In the second session of the day, presentations highlighted the urgent need for institutional arrangements and infrastructure, focusing on stablecoins and spot ETFs.

Kang Hyung-gu, professor at Hanyang University, projected in his keynote speech that, "When the era of AI and algorithmic trading arrives, stablecoins suitable for real-time micropayments will become a key tool." He pointed out, "Whether or not we take the lead, a won-based stablecoin will inevitably be created; if we hesitate, there is a risk it may emerge under the leadership of foreign countries."

The need for expanded ETF infrastructure was also discussed. Oh Jong-wook, CEO of Wavebridge, said, "The digital asset market is expected to grow more than tenfold by 2030. The domestic Bitcoin spot ETF market alone could expand to a scale of ₩10 trillion," and added, "Liquidity infrastructure and regulatory backing must be developed together."

Speakers emphasized the need for more active discussion between the industry and policymakers. Lee Sang-young, partner attorney at YK Law Firm, remarked, "At this point, speed matters more than direction," and said, "We must move quickly before legislative delays cause us to fall behind other countries."

Kang Min-seung, BloomingBit Reporter minriver@bloomingbit.io