Since the inauguration of Lee Jae-myung's government, expectations for the development of the virtual asset industry have been growing. Kim Yong-beom, the CEO of Hashed Open Research, has been appointed as the first policy chief of the new government; Kim has a strong understanding of virtual assets as a traditional bureaucrat. In addition, the Democratic Party of Korea is expected to introduce the Digital Asset Basic Act, which has been prepared for some time, and a presidential virtual asset organization is also likely to be established.
According to the political circle on the 9th, on the 10th at 10 a.m., Representative Min Byeong-deok of the Democratic Party of Korea is scheduled to propose the second phase of legislation for virtual assets, the "Digital Asset Basic Act." The act to be proposed by Representative Min is expected to include clear regulations and provisions for the digital asset industry, including a stablecoin licensing system, definitions and development of digital asset businesses, establishment of a Digital Asset Committee, filing declaration systems, and separate regulations on issuance and distribution disclosures.
At 4 p.m. that day, the Digital Asset Committee under the Democratic Party of Korea's election countermeasure committee will hold a farewell ceremony. The Digital Asset Committee, which was launched last month, is expected to be upgraded to a special committee on digital assets after the party convention due to the election of President Lee. The Digital Asset Committee was established to incorporate virtual assets into the institutional realm and foster growth, with Representative Min Byeong-deok serving as chairperson and working hard to draft the Digital Asset Basic Act.
The ruling party is expected to work on fostering the virtual asset industry alongside Deputy Minister Kim. Deputy Minister Kim has served in the Ministry of Finance and the Ministry of Strategy and Finance, and has also worked as a senior financial expert at the World Bank. After retiring from public office, he gained attention in the blockchain industry. Hashed Open Research, which he has led since 2022, acts as the think tank for the global blockchain investment firm Hashed and has led research in the virtual asset industry and influenced policy directions.
Deputy Minister Kim is particularly noteworthy because, though he comes from a typical elite economic bureaucrat background, which tends to be negative or conservative about virtual assets, he has a high understanding of virtual assets and is favorable towards the industry. For example, when former Minister of Justice Park Sang-ki stated in 2018 that he was considering "shutting down virtual asset exchanges," Deputy Minister Kim opposed this and suggested a solution of "bank real name accounts." He maintained the position that while the side effects of innovation should be addressed, the seeds should not be cut off, and he was involved in instituting the regulatory framework for the virtual asset trading ecosystem.
A presidential Digital Asset Committee is also expected to be established. The presidential virtual asset organization is part of President Lee's election pledge and is included in the draft of the Digital Asset Basic Act. According to the draft of the basic act, the presidential Digital Asset Committee will consist of around 20 members, including the chairman of the Financial Services Commission and two private commissioners. The key aspect is to ensure that private commissioners make up the majority of the entire committee to broaden private participation.
The virtual asset industry is expecting the pace of industry growth to quicken following the election of President Lee. In the president's pledge book, virtual assets are addressed as part of a fair economy.
A source in the virtual asset industry noted that "during this presidential election, the virtual asset industry was deemed a key policy by both ruling and opposition parties, but in fact, looking through the policy documents, the Democratic Party of Korea had more detailed pledges." They added, "Just looking at President Lee's pledges, if realized, the current market, which is mainly focused on individual investors in the spot market, will undergo a complete restructuring with increased participation from institutional investors and the launch of various investment products."