"Digital Asset Phase 2 Legislation, Government Proposal May Be Announced This Year"

With about three months left in the year, opinions were expressed that Phase 2 legislation for digital assets (cryptocurrencies) should be enacted within the year and that it is fully possible.

Hwang Se-woon, Senior Research Fellow at the Korea Capital Market Institute, participated in the 'Digital Asset Market: From Institutionalization to Globalization' discussion held on the 26th at Seminar Room 1 of the National Assembly in Yeouido, Seoul, and said, "It appears that the government's announcement of the Phase 2 bill of the Digital Asset Basic Act could be possible within the year."

The Phase 2 legislation is expected to include △the institutionalization of stablecoins (virtual assets whose value is linked to fiat currency), △measures to protect users and stabilize the market, and △the concretization of token securities (STO) laws. Hwang said, "The integration of digital assets such as stablecoins and STOs with financial markets is an inevitable direction," and added, "Since issuers and service providers effectively have the nature of financial companies, entry regulations and investor protection measures are necessary."

He particularly pointed out that allowing corporate account openings in this regard is urgent. Hwang noted, "The government has already stated it would allow corporations to open virtual asset accounts in the second half of the year, but it still appears there has been no progress."

Other measures to supplement the bill include ▲regulation of entry and operations for virtual asset service providers, ▲prevention of conflicts of interest, ▲designation of self-regulatory bodies, and ▲strengthening of disclosure obligations.