Jang Dong-hyuk, the representative of People's Power, criticized the government and the ruling party over the taxation of virtual assets on the 4th for fueling market confusion.
Representative Jang attended the "Good Morning Demand Policy Academy" hosted by the Yeouido Institute at the National Assembly on the same day and said, "The government and the ruling party are going back and forth without even coordinating, only increasing market uncertainty."
He pointed out that the Democratic Party of Korea is pushing for a moratorium again a month after the government announced its position to tax as scheduled. It is argued that the ruling party is trying to reverse its policy direction as the opposition from young people grows.
Representative Jang said, "The People's Power has been preparing to create a market ecosystem early when proposing the KRW stablecoin bill last year, and has expressed opposition to collecting taxes without preparation."
Criticism continued that the institutionalization of stablecoins is being delayed. While the U.S. is trying to incorporate stablecoins into the system through the enforcement of the Genius Act in January next year, the government's direction for the creation of the won stablecoins market has not been suggested in Korea.
He said that virtual assets moved overseas last year exceeded 160 trillion won, and the commission paid to overseas exchanges is estimated to be 5 trillion won, adding, "If the Genius Act is implemented, a full-fledged dollar strike may occur."
"Our government's response is frankly too late," he said, adding that the ruling party has been speeding up its handling of political bills such as the Special Prosecutor Act and has not made progress in consultations with the government over the Framework Act on Digital Assets.
Lim I-ja, chairman of the policy committee who participated in the discussion, stressed that consumer protection and capital outflow risks should be examined together in the process of introducing stablecoins.
Lim, chairman of the policy committee, said, "We need to think about whether it is possible to cash in 24 hours and who will take the authority and responsibility when the platform is connected."
Kang Hyung-gu, a professor of finance management at Hanyang University, gave a lecture at the academy under the theme of "Digital Asset and Financial Innovation." Party officials, including Chairman Jang, Secretary-General Chung Hee-yong, Chairman Lim of the Policy Committee, and Director Cho Seung-hwan of the Yeouido Institute, attended the event.
Meanwhile, the Democratic Party of Korea is considering delaying the taxation of virtual assets scheduled for January next year. Democratic lawmakers from the National Assembly's Finance and Economic Planning Committee will collect related opinions and make suggestions to the party leadership.
