“Institutions Must Participate in the Digital Asset Market” ... Ruling and Opposition Parties Focus on Talks to Strengthen Trust

[Financial News] With the government preparing the second-stage legislation for the General Act on Digital Assets, the ruling and opposition parties have reached a consensus that institutional participation in the market should be allowed. The key is to build infrastructure that enables funds from corporations and institutions to flow into the virtual asset market.
On the 12th, Choi Eun-seok of the People Power Party hosted a seminar at the National Assembly Members’ Office Building titled “Digital Assets: The Era of Institution-Centered Markets Is Coming.” The seminar was attended by the People Power Party’s floor leadership as well as Yoo Dong-soo, chair of the National Assembly’s Political Affairs Committee and a member of the Democratic Party of Korea (DPK). Participants from both sides of the aisle voiced the need for institutional participation in the digital asset market. The Financial Services Commission (FSC), the Korea Fintech Industry Association (KFIA), and the AI (artificial intelligence) Digital Economy and Finance Forum also took part.
Choi said, “Global financial institutions are expanding their businesses into various areas, including asset tokenization, payments and custody. It is time to examine the opportunities and challenges this could bring to Korea’s financial industry and capital markets and develop responses.”
Some also argued that institutional participation in the digital asset market must be allowed. Rep. Park Dae-chul said, “The market is currently centered on individuals, but institutions must participate,” adding, “A system backed by trust must be established for institutions to take part.” Floor leader Jung Jeom-sik also said, “We need to consider what economic value corporations and financial institutions can create by participating in the market, and how to connect those results to businesses and people’s everyday lives.”
Yoo, the committee chair, said the ruling and opposition parties should reach an agreement to pass the General Act on Digital Assets in the National Assembly and achieve both goals of strengthening the industry’s competitiveness and protecting financial consumers. He said, “If we fail to maintain the competitiveness of the digital asset industry, it will be difficult even to preserve the won’s 2% share among the world’s currencies,” adding, “We must secure trust in and the competitiveness of the financial market through the General Act on Digital Assets.”
Jongsub Lee, a professor in the Department of Business Administration at Seoul National University who delivered a presentation, said, “Discussions should focus on whether institutional funds can move efficiently through reliable infrastructure and be put to productive use.” The recent Binance hacking incident was also raised, along with the need for a system to verify operational controls.
[email protected] Lee Hae-ram Reporter