"Restriction on Corporate Qualification for Virtual Asset Issuers... Enactment of Law Mandating Korean White Paper"

Korea Capital Market Institute Presents Legislative Direction for Digital Asset Act at Seminar on 22nd
Push for Disclosure Obligations and Unfair Trading Prohibition Regulations on Virtual Assets

"Establishment of Digital Asset Association and Regulation of Stablecoins Also Needed"

[Asia Economy Reporter Ji Yeon-jin] The newly enacted Digital Asset Act proposes submitting a Korean white paper with enhanced investment information functions to financial authorities and disclosing it to market participants.

Kim Gap-rae, Senior Research Fellow at the Korea Capital Market Institute, announced this at the policy seminar titled "Key Issues and Legislative Directions of the Digital Asset Act" held on the afternoon of the 22nd at the Korea Financial Investment Education Institute. This seminar was hosted by the Capital Market Institute and sponsored by the Financial Services Commission.

On the day, Research Fellow Kim stated, "Since digital assets form markets for an unspecified majority, are issued and circulated, and there is significant information asymmetry between issuers and buyers, it is necessary to resolve the information gap through a mandatory disclosure system," adding, "Substantial investment information such as specific business plans, plans for the use of raised funds, investment risks, and the rights and obligations granted to holders should be legislated as mandatory items in the digital asset plan."

He further explained, "In cases like Bitcoin, where it is difficult to consider there is an issuer, the digital asset business operator who intermediates the digital asset transactions and collects fees should fulfill the issuance disclosure obligations as if they were the issuer."

Additionally, Senior Research Fellow Kim conveyed that the qualifications of digital asset issuers should be limited to domestic and foreign corporations, and issuers should be subject to disclosure obligations and duties of good faith.

Moreover, the Digital Asset Act includes regulations on unfair trading such as prohibitions on insider trading, market manipulation, and fraudulent trading, and requires digital asset business operators to implement market surveillance systems.

Senior Research Fellow Kim emphasized, "The Digital Asset Association is necessary to establish a fair trading order, effectively protect users, and promote the sound development of the digital asset industry by organizing an association composed of digital asset business operators to utilize industry expertise and enhance participation awareness."

He also noted that, given the increasing importance of responding to financial system risks, settlement risks, and mass redemption request risks of stablecoins revealed in the Luna incident, regulation of stablecoins is also necessary.

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