Virtual Asset Business Law
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On October 7, 2020, the details of The National Assembly Seminal for Virtual Asset Business Law that was held on September 22, 2020, were revealed. Major commercial banks and members of the National Assembly were In attendance at the seminar, which took place at the Federation of Korean Industries hall.

Virtual Asset Business Law Importance

During the seminar, all parties agreed that the Virtual Business Law was crucial for the transformation of the digital economy in the post COVID19 era. Additionally, it was crucial for the future of financial industries. According to a press release by Delio, the Korea National Assembly began work on the Virtual Asset Business law after the Act on Reporting and Using Specified Financial Transaction Information was amended. The Act ensured that there was regulation on money laundering via crypto.

Work Has Started On The Virtual Asset Business Law

Rep. Kim Byeong-wook hosted the seminar. Byeong-wook is the secretary of the National Policy Committee and a Democratic Party (DP) lawmaker. The sponsor of the seminar was Delio, a virtual asset-lending firm. Specifically, the seminar was sponsored by DUCATO, a DeFi project developed by Delio.

During the seminar, Kim Tae-nyeon, the floor leader of the DP party delivered a congratulatory message. According to Tae-nyeon, the Democratic Party of Korea and the government would roll out the Korean New Deal. It will be a national development plan designed to transform Korea into a leading nation. Tae-nyeon added that building an AI government that uses the blockchain was one of the main pillars of the Korean New Deal.

Rep. Youn Kwan-suk, the chair of the National Policy Committee also spoke at the seminar. He said that the National Assembly was carefully looking into revising all laws to ensure they were accommodative of virtual assets. The result was that it would promote the virtual asset industry and protect investors.

Lee Hae-bung, the deputy director of the Financial Supervisory Service detailed the major issues with the Act on Reporting and Using Specified Financial Transaction Information that was passed in 2019. He noted that the amendments to the law did not support the entry of virtual assets into the institutionalized system. He said that South Korea has to establish a virtual asset law to provide clarity in the virtual asset sector.

What Do Commercial Banks Think Of The Proposed Law?

Representatives of commercial banks at the seminar said that they looked forward to the law on virtual assets. According to Jang Hyeon-gi, the head of the Digital R&D Center at Shinhan Bank, the bank could only play its role in the DeFi sector with a converged model of blockchain and financial service.

Jo Jin-seok, the head of the IT Innovation Center at KB Kookmin, predicted that all assets in the world would be digitized soon. He noted that since amendments were passed to the law in 2019, Korean banks have been looking into virtual asset custody services.

Virtual asset firms were also in support of proposed changes. According to Han Seong-hee, the director of Bithumb, the law on virtual assets was important for the development of the virtual assets sector. Jung Sang-ho, the CEO of Delio, also expressed similar sentiments. He noted that the virtual asset industry had not yet received legal recognition in South Korea. He noted that legislation was needed since the industry was already growing.

It would appear that all stakeholders in South Korea agree on the need for legislation to regulate the virtual asset sector. Such legislation would ensure the rapid development of the sector in the nation, and create numerous opportunities for the masses to benefit from engaging in this emerging market. 

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