The renaissance of virtual assets can be achieved through cooperation, innovation, and a decentralized future. At this crossroads of opportunity and challenge, we must strive to create an innovative world through cooperation that transcends regions, industries, and ideologies.
Rahul Advani, head of policy for Ripple's Asia-Pacific region, noted during the '2024 Virtual Assets Conference' held at the Westin Chosun Hotel in Jung-gu, Seoul, on the 16th, that 'the theme of the second Trump administration emphasizes the dynamic convergence of geopolitical innovation and regulation.' He stated that 'for a renaissance in cryptocurrency to happen, several events must occur.' He cited examples such as ▲ new interest ▲ a leap in innovation and creativity ▲ challenges to existing paradigms.
Advani evaluated that 'the Asia-Pacific region has emerged as a field of innovation, regulation, and experimentation in cryptocurrency over the past five years.' He mentioned that clear guidelines were established, centered on Singapore and Hong Kong, to encourage innovation and mitigate potential risks. Specifically, he referred to Singapore's acquisition of licenses for digital payment token (DPT) services and the introduction of a cryptocurrency licensing system for virtual asset trading platforms (VATP) in Hong Kong.
In contrast, he explained that despite being a hub for blockchain corporations, the United States has faced criticism for ambiguous regulations and the lack of clear rules. The U.S. Securities and Exchange Commission (SEC) has focused on enforcement as a regulatory approach and has taken actions against innovative corporations based on enforcement. Advani noted that 'Ripple was also among those targeted, and fortunately achieved successful results,' but he added that 'the law enforcement-centered policy created problems for legitimate corporations, and there was speculation during the last presidential election that the U.S. had reached a turning point in this attitude.'
Advani mentioned that the second Trump administration could learn from pioneering cases related to virtual assets from Asia-Pacific countries. For example, he cited the DPT license in Singapore, as well as legislation regarding stablecoins (coins that do not change in price). In the case of Hong Kong, which has emerged as a center for Web3, the Hong Kong Monetary Authority (HKMA) has previously implemented a regulatory sandbox for stablecoins.
Regarding what these cases suggest for South Korea, Advani stated, 'South Korea is the most active country in cryptocurrency transactions in the world,' but he noted, 'there is almost no institutional participation like in Singapore or Hong Kong.' He continued, 'To change this, institutions need to clearly categorize digital assets and reduce uncertainty for institutional investors regarding stablecoins.'
He added that 'the Korea Financial Services Commission has announced the “token securities issuance (STO) guidelines,” but the related bill is pending,' stating that 'if this bill passes, digital assets can be regarded as securities.' Furthermore, he emphasized the need to 'build public-private partnerships with industry stakeholders' and concluded by saying, 'Lastly, we must support innovative experimentation.'
Regarding Ripple's plans for this year, he mentioned the stablecoin RLUSD launched by Ripple. Ripple has made this coin usable in decentralized finance (DeFi) applications, allowing RLUSD to integrate with various DeFi protocols for transactions and lending on the Ethereum blockchain.
Finally, Advani stated that 'for the cryptocurrency industry to thrive, it must adapt to evolving regulations and market demands,' adding that 'in the short term, the industry should focus on complying with existing laws to build credibility, while at the same time collaborating with regulatory agencies to establish a robust future.'