PiCK

Summary

  • Shin Jin-chang, vice chairman of the Financial Services Commission, said the government will submit its Digital Asset Basic Act bill to parliament as soon as possible to institutionalize the digital asset industry.
  • The government said it will prepare a bill covering both growth of the digital asset industry and user protection, including entry regulations by business type and conduct rules comparable to those for financial companies.
  • Shin said the government will strengthen security and the safety of IT operations, while gradually expanding market participation by corporations with sufficient capital and risk-bearing capacity.

Forecast Trend Report by Period

Shin Jin-chang, vice chairman of the Financial Services Commission, said the government will accelerate work on legislation to institutionalize the digital-asset industry.

Speaking in congratulatory remarks at a seminar titled "Digital Assets: The Institutional Era Arrives" held at the National Assembly Members' Office Building in Seoul's Yeouido on Nov. 12, Shin said the government would further step up efforts to submit the bill to parliament as soon as possible after comprehensively considering matters discussed at the seminar and elsewhere.

Shin said the global digital-asset market has recently shifted from one centered on price volatility to one influenced by a broader range of factors, including macroeconomic conditions and flows of institutional capital. He added that the industry's center of gravity is also expanding beyond exchanges into areas of financial infrastructure such as payments.

The government is therefore preparing legislation that covers both growth of the digital-asset industry and user protection. It plans to overhaul entry regulations by business type and establish conduct rules comparable to those applied to financial companies. The aim is to build an environment in which users can trade with confidence.

The government also plans to put in place institutional measures to ensure transparency and accountability across digital-asset issuance and distribution. Referring to a recent string of hacking incidents, Shin said security and the safety of IT operations are key factors that determine trust in the industry. He added that the government would establish sufficient rules related to security and systems safety.

Shin also reaffirmed a phased approach to broader corporate participation in the digital-asset market. User protection and market stability must come first to foster a healthy market ecosystem, he said, adding that participation by corporations with sufficient capital and risk-bearing capacity is also important.

The Financial Services Commission announced a roadmap in February last year for broader corporate participation in the digital-asset market, and has since pursued some measures, including market participation by nonprofit organizations. Shin said the government would push phased steps for corporate participation while considering consistency with digital-asset bills that will be discussed in the National Assembly.

Shin said the government would continue to gather views from the market on current issues, practical difficulties and ways to improve the system, and would maintain communication with the industry.

Suehyeon Lee