"Urgency in Institutionalizing Virtual Asset Derivatives and Credit Provision... Securing Global Competitiveness Is Essential"

Academic and industry experts have identified the institutionalization of virtual asset (cryptocurrency) derivatives and credit provision as pressing issues that can no longer be delayed. There was consensus that global competitiveness in line with global standards must be secured through swift establishment of regulatory frameworks.

On the 26th, Lee Hae-boong, Director of the Upbit Investor Protection Center, attended the panel discussion of the seminar 'Preventing the Outflow of ₩13.1 Trillion in National Wealth: Digital Asset Basic Act and Onshore Money Reshoring Strategies' held at the National Assembly Members' Office Building in Seoul. He stated, "The authorities are developing guidelines for virtual asset credit trading, considering its impact on the domestic market and user choice," and emphasized, "The establishment of a principles-based regulatory system is urgent." He added, "The domestic market must also quickly define its direction so that the bidirectional flow between overseas trading and domestic investors can be systemically managed."

Lee Joo-hyun, Head of Strategic Legal Affairs at Bithumb, also said, "Corporations, by their professional investment nature, always require hedging methods, and this is impossible without derivatives," projecting, "If the framework for credit provision and institutional discussions are sorted out, Korea can also move forward to a regulatory system aligned with global standards." He stressed, "As the financial authorities have announced the approval of corporate entry into virtual asset investment in the second half of the year, swift regulatory establishment is necessary."

There is also an opinion that institutionalizing virtual asset credit provision is essential for global market competitiveness. Kim Jae-jin, Executive Vice President of DAXA, said, "The institutionalization of credit provision has long been discussed and its necessity has been consistently raised," adding, "Major overseas exchanges provide templates that combine spot trading and derivatives to attract large inflows of funds. The industry, authorities, and legislature must cooperate to establish systemic foundations that enhance global competitiveness."

Kang Hyun-jung, attorney at Kim & Chang, suggested, "As the domestic market is centered on individual investors, there is no choice but to institutionally recognize the demand for derivatives and credit provision," and continued, "The Digital Asset Basic Act should refer to the Capital Markets Act but allow businesses to set their own credit provision limits reflecting the characteristics of digital assets, granting flexibility."

Ryu Hyuk-sun, KAIST professor, also emphasized, "The biggest stumbling block is that derivatives are currently managed only under the Capital Markets Act," and stressed the importance of specifying derivatives in future Digital Asset Basic Act legislation to provide a foundation for expanding the system.