On Oct 7, details from the National Assembly Seminar for the Virtual Asset Business Law held on Sep 22 by South Korea’s policymakers and major commercial banks were revealed in a press release.
Discussion on the Virtual Asset Business Law
The event was sponsored by DUCATO, a DeFi project by Delio—one of the leading digital asset lending companies, and chaired by Rep. Kim Byeong-wook—the secretary of the National Policy Committee.
In the seminar, leaders emphasized the need for formulating a Virtual Asset Business Law. Notably, and as per dictates of existing laws, a clear boundary between digital assets and finance should be defined.
In their analysis, they reckon that this was necessary for the development of financial industries as well as transforming the digital economy after the effects of the coronavirus pandemic have subsided.
Presently, South Korea doesn’t recognize digital assets as an industry on its own. The CEO of Bithumb said this was necessary and clarity will overly revitalize the market and encourage collaboration between different stakeholders drawn from blockchain and even banks.
Work in Progress
The National Assembly is now working on the Virtual Asset Business Law after the amendment of an Act on Reporting and Using Specified Financial Transaction Information which specifically aids in regulating money laundering of digital assets.
Rep. Kim Byeong-wook said the policymakers were carefully thinking about how to revise laws around digital finance innovation to help in digital asset innovation and development of the financial sector with the overarching goal of, first of all, protecting investors. Regardless of their objectives, the Virtual Asset Business Law would be done swiftly with “lots of social discussions.”
Crucially, work will first begin by defining the industry before critical ordinances on the Act on Reporting and Using Specified Financial Transaction Information is completed. This is so because after the pandemic, the possibilities of digital assets will be broad and the development of fitting laws was necessary for a clearer definition of the industry.
Last month, BTCManager reported on Bank of Korea’s plans of moving towards the technical phase in their concerted effort to pilot a central bank digital currency (CBDC)–the digital won.
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