38th Virtual Currency Forum of the 21st National Assembly... No Conflict of Interest Discussion

National Assembly Focused on 'Reviving the Virtual Currency Industry'
Investors Protest Regulations... Everyone Seeks 'Tax Deferral'
"May Face Criticism for Colluding with the Industry"

Since the 21st National Assembly began its term on May 30, 2020, nearly 40 cryptocurrency-related forums and seminars have been held, but it has been revealed that lawmakers from both ruling and opposition parties have neglected issues such as conflicts of interest among members of the National Assembly and strong regulations.

The National Assembly building./Photo by Dongju Yoon doso7@

According to a comprehensive report by Asia Economy on the 16th, a total of 38 cryptocurrency-related seminars and forums were held in the National Assembly from June 1, 2020, to May 15 of this year. The National Assembly held discussions on various related topics including the direct cryptocurrency industry, games, blockchain technology, and cryptocurrency accounting treatment.

The cryptocurrency controversy was triggered by independent lawmaker Kim Nam-guk, but lawmakers from both ruling and opposition parties opened venues for related discussions. Lawmakers from the Democratic Party of Korea held a total of 15 cryptocurrency-related seminars. This was followed by 12 from the People Power Party, 2 from the Justice Party, and 1 from an independent lawmaker. The ruling and opposition parties also held seminars together. The People Power Party and the Democratic Party of Korea co-hosted a total of 7 times. The most active participant was Yoon Chang-hyun of the People Power Party, attending 9 times in total. Next was Kim Byung-wook of the Democratic Party of Korea, who participated 6 times. Both appear to have actively promoted such forums as the chairperson of the party’s special committee on virtual assets and the secretary of the virtual asset task force (TF) team around 2021 and last year, respectively.

Both Ruling and Opposition Focused on Cryptocurrency... But Where Are the Conflict of Interest Issues?

Democratic Party lawmaker Kim Nam-guk is arriving at his office in the National Assembly on the morning of the 14th. After arriving, he announced his resignation from the party through Facebook.
[Image source=Yonhap News]

However, the forums did not discuss conflicts of interest or morality issues related to lawmakers and cryptocurrency. The topics of the forums focused on ‘development of the cryptocurrency industry’ and ‘establishment of cryptocurrency industry laws.’ Although the risks of cryptocurrency investment were mentioned at each forum, the discussions ultimately led to ‘industry settlement.’ At the ‘Future of Blockchain Games in Korea?: 1st National Assembly Policy Forum for Game System Improvement’ held on July 10, 2021, hosted by Democratic Party lawmaker Lee Sang-heon, Kim Seok-hwan, then CEO of Wemade Tree, also participated. This is interpreted as a result of the ruling and opposition parties rushing to court voter support ahead of the presidential election as investors opposed the cryptocurrency regulations of the Moon Jae-in administration.

At the ‘Policy Forum on Virtual Asset Taxation Issues and Investor Protection’ held on November 3, 2021, Democratic Party lawmaker Roh Woong-rae said in his opening remarks, "The risks of cryptocurrency are being emphasized," but also stated, "While taxation where income exists is natural, the argument that there can be no taxation without protection is also valid. I hope practical and effective measures such as deferring taxation on virtual assets will be prepared."

Even after the Terra-Luna incident, which caused damages amounting to 59 trillion won, and the controversy over the delisting of WEMIX issued by Wemade, the National Assembly was busy trying to revive the cryptocurrency industry. At the ‘Policy Forum on the Yoon Suk-yeol Government’s Game-type Metaverse and Blockchain Content Development Strategy’ held on December 23 last year, People Power Party lawmaker Lee Yong-ho said, "The Terra-Luna crash and WEMIX delisting greatly discouraged game companies developing new technology games, but crisis is opportunity," adding, "I advocate for the limited allowance of play-to-earn (P2E) games, which are currently banned in Korea. I will gradually prepare policy support at the National Assembly level for the successful development of game-type metaverse and blockchain content."

Political Circles and Academic Societies Claim Cryptocurrency Industry Lobbying... "The More Legislative Power, the More Caution Needed in Meetings"

The political circles and academic societies related to cryptocurrency claim that the cryptocurrency and gaming industries are lobbying the political sphere. On the 12th, People Power Party lawmaker Ha Tae-kyung said on his social media, "During the presidential election, the P2E policy almost became Yoon Suk-yeol’s final pledge, but I, as the head of the election committee’s special game committee, stopped it, so it was eventually excluded," adding, "When reviewing game pledges, I received many proposals for P2E legalization from unknown sources."

The Korea Game Society stated in a press release, "There have been rampant rumors that P2E companies and related organizations lobby the National Assembly," and "We demand a full investigation of ruling and opposition lawmakers and their aides regarding the WEMIX incident."

Wi Jeong-hyun, president of the Korea Game Society, said, "Inviting industry insiders to forums to push their opinions can be risky as it may contain biased claims," adding, "Lawmakers who hold legislative power should be cautious by minimizing meetings with industry insiders, but instead, they may face criticism for collusion."

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