"Digital Asset Law, Incomplete... Systematic Legislation Needed"

Attorney Kang Hyun-gu of Bae, Kim & Lee LLC stated, "The legal system is not keeping up with the rapid development of the digital asset industry. The current Digital Asset Basic Act in force is very incomplete legislation, a remnant of the Terra-Luna crisis," adding, "There is a need to establish more systematic and realistic bills through discussion."

Attorney Kang made these comments while participating in the 'National Assembly Forum for the Enactment of the Digital Asset Innovation Law' at the 6th Meeting Room of the Members' Office Building at the National Assembly Building in Yeouido-dong, Seoul, on the 22nd.

He emphasized that the government must not repeat its previous legislative failures related to digital assets. He said, "In 2017, the government used the negative term 'virtual currency' and declared a complete ban on ICOs," adding, "As a result, domestic companies had no choice but to seek indirect issuance overseas."

He further pointed out, "At that time, the measures were nothing more than administrative regulatory guidance without a legal basis and ultimately became a representative example of capital outflow from the industry overseas."

Going forward, there needs to be in-depth discussions in the Digital Asset Innovation Law to prevent such mistakes. Attorney Kang remarked, "It is positive that the currently proposed Digital Asset Basic Act and Innovation Act have reflected significant parts of the European Union’s MiCA regulations, and have newly introduced roles such as collective management, consulting, and order transmission in addition to trading, brokerage, and custody." However, he added, "Deeper discussions are needed for digital asset lending businesses and stablecoins."

In particular, Attorney Kang emphasized about stablecoins, "Simple issuance regulation is not enough," stating, "It is necessary to implement licensing regulations at the financial industry level and continuous monitoring, taking into account their use as a means of payment."