With the presidential election set for June 3, both the ruling and opposition parties are actively unveiling promises to invigorate the virtual asset market and are recruiting relevant experts. This is seen as an effort to attract the votes of the estimated 15 million virtual asset investors. However, the industry questions whether this is merely a repetition of 'empty promises' that occur during election seasons.
According to political circles on the 29th, People Power Party lawmakers Park Soo-min and Choi Bo-yoon announced during an emergency response committee meeting held in Yeouido, Seoul, that they will promote seven initiatives regarding 'digital virtual assets' as part of their presidential campaign pledges. The People Power Party emphasized that it would eliminate the one-exchange, one-bank principle to ease regulations on the virtual asset market and open the door for virtual asset spot exchange-traded funds (ETFs) within this year.
The seven initiatives announced the day before are: ▲ elimination of the one-exchange, one-bank system ▲ institutionalization of virtual asset transactions for corporations ▲ allowance of virtual asset spot ETF trading ▲ completion of the legal framework for security token offerings (STOs) ▲ introduction of a regulatory framework for stablecoins ▲ establishment of a basic law for the promotion of digital assets ▲ preparation of a groundbreaking taxation system.
The Democratic Party of Korea is also actively pursuing virtual asset policies. Kim Yong-jin, a professor at Sogang University and an expert in security token offerings (STOs), has joined the 'Growth and Integration' policy advisory group of the confirmed presidential candidate Lee Jae-myung. STOs are financial services that utilize blockchain technology to issue real assets, such as real estate, artworks, and music, in token form to enable fractional investments. Professor Kim chaired the STO forum held in February, where candidate Lee also attended, citing 'the activation of digital finance centered around security tokens' as a way to address the Korea discount.
Democratic Party of Korea lawmakers are holding a digital asset forum in support of candidate Lee. Notably, Representative Min Byeong-deok, a member of the National Assembly's Political Affairs Committee, presented a draft of the first digital asset basic law at a national assembly debate on the 24th. In the draft, Min defined digital assets as 'assets that hold economic value represented in digital form on a distributed ledger and can be transacted or transferred.' This goes further than the previous bill protecting virtual asset users, which only defined virtual assets as 'electronic tokens that can be transacted or transferred electronically.'
In addition, prominent politicians are making proposals regarding virtual asset policies. Kim Moon-soo, a candidate from the People Power Party who reached the final candidacy stage, stated during a press conference on the 27th, 'We will allow government institutions to invest in virtual assets and support trading of virtual asset ETF products.' Another finalist, Han Dong-hoon, previously argued for imposing transaction taxes on virtual assets, allowing stablecoins, and improving related regulations during an interview regarding his presidential candidacy.
However, the industry's response has been lukewarm. While various proposals emerge during election seasons, very few are actualized. Some point out that politicians seem to lack a proper understanding of the market. A representative from an exchange remarked about the 'multiple exchanges-multiple banks' system, stating, 'This system has been a long-standing wish for the industry, but it is questionable whether the political sphere has thoroughly researched and understood why the industry wants this.'
Expectations regarding the virtual asset spot ETFs also vary. Before the April 10 general elections last year, the Democratic Party of Korea pledged to ease regulations on virtual assets to realize Bitcoin spot ETFs, but discussions subsequently stalled. Now, the People Power Party, which had been skeptical about Bitcoin spot ETFs, has raised it as a task for the upcoming presidential election. An industry insider noted, 'It seems they do not know what policies they are proposing. There is little expectation of realization due to a lack of policy continuity.'