"Investor Protection Fund Creation" vs "Corporate Account Issuance"... Democratic Party Meets Representatives of 5 Major Virtual Asset Exchanges for Policy Consultation

Democratic Party Virtual Asset Special Committee On-site Meeting
Democrats "We Will Review the Exchange's Proposal"

On the 13th, Park Hong-geun, floor leader of the Democratic Party of Korea, and members of the Special Task Force for Virtual Assets under the Priority Livelihood Practice Group visited Upbit in Gangnam-gu, Seoul, and received a policy proposal document from Lee Jae-won, CEO of Bithumb. Photo by the National Assembly Press Photographers Group

[Asia Economy Reporter Park Jun-yi] The Minsheng Priority Practice Group of the Democratic Party of Korea met with representatives of the five major virtual asset exchanges to discuss investor protection measures. On this day, Democratic Party lawmakers emphasized investor protection funds and other protective measures, while the exchanges proposed industry development measures such as issuing corporate accounts, allowing investments, and issuing real-name accounts at multiple banks.

On the 13th, the Virtual Asset Special Committee, part of the Minsheng Priority Practice Group of the Democratic Party, held a status check and on-site meeting at the Upbit headquarters located in Gangnam-gu, Seoul.

On this day, Floor Leader Park Hong-geun, along with Special Committee secretaries Kim Byung-wook and members No Woong-rae, Baek Hye-ryun, Yang Ki-dae, Min Byung-duk, and Jeon Yong-gi, met with representatives of the five major exchanges (Upbit, Bithumb, Coinone, Korbit, Kobox).

Before the closed-door meeting, Floor Leader Park stated the need for a virtual asset investor protection system. He said, "Investigations into fraudulent coins and judicial actions are slow. There have been criticisms that virtual asset exchanges earned over 4 trillion won in profits last year while unfair practices involving fraudulent coins were left unchecked," adding, "In the gap of regulatory management, it is urgent for us to quickly prepare measures for investors."

He continued, "We have launched the Minsheng Priority Practice Group Special Committee and are working on legislation. We will refine the existing bills, including the suggestions received today, and once the National Assembly opens, the Political Affairs Committee will begin full discussions."

Lawmaker Kim emphasized the necessity of establishing an 'Investor Protection Fund.' He said, "It is true that exchanges have gained economic benefits," and added, "I think it is necessary in the market for exchanges to show an attitude of sharing responsibility and concern for protecting good-faith investors by creating an investor protection fund together."

He also pointed out, "There is no legal framework in place to check whether listings are proceeding properly, how many false disclosures exist, or whether responsibility lies with the exchange issuers," and criticized, "I have serious doubts about whether investors are using exchanges properly without market manipulation, or if they are turning a blind eye to stock price manipulation and market manipulation." He emphasized, "Exchange issuers, investors, the National Assembly, and the government all need to come together to expect the future potential of the virtual asset industry, reveal problems, and work together on improvements."

Subsequently, the 'Digital Asset Joint Council' formed by the five major exchanges submitted a policy proposal for the development of the digital asset industry to the Democratic Party. However, the content mainly focused on industry support measures rather than the 'investor protection measures' emphasized by the Democratic Party side.

Specifically, the demands included ▲clarification of standards such as allowing one exchange to issue real-name accounts at multiple banks ▲activation of corporate and institutional investor participation in the virtual asset market ▲passing of virtual asset tax deferral measures and clarification of standards ▲allowing domestic virtual asset operators to remit funds overseas ▲allowing financial services for virtual asset operators.

After the meeting, Lawmaker Kim said about the proposal, "I judge that it is sufficiently worth reviewing," and added, "We will break it down and review which standing committee should handle it, and coordinate well with virtual asset companies."

This content was produced with the assistance of AI translation services.