Korea’s Act Review Committee Neglects “Digital Property Law” – Again!
- The National Assembly of Korea held a subcommittee to consider the first bill this morning but continued not to discuss the “Digital Asset Basics Act.”
- Crypto investors are increasingly concerned about the damage caused by the regulatory vacuum.
- Although South Korean politicians expressed hope to develop the “Basic Law on Digital Assets” by 2022, it has been continuously ignored.
This morning, South Korea’s National Assembly held a subcommittee to consider the first bill. Still, it should have discussed the Digital Asset Basics Act, known as the Omnibus Act, related to virtual assets, according to TechM communication.
Although 17 bills related to virtual assets were submitted that day, the discussions failed as they were pushed to a lower priority due to the amended Capital Markets Act. Especially with the full session of the National Assembly this afternoon, there is not enough time to discuss the bill.
According to the report, although South Korean politicians expressed hope to develop a “Basic Law on Digital Assets” by 2022, the Bill Review Committee paused discussion on the bill last month.
Therefore, the prescribed vacancy period is expected to be extended further. Unlike the country’s rapid release of ST0 regulatory guidelines in the past, this is due to the lack of smooth political consultations.
The continuous refusal to consider and discuss the Digital Asset Law makes many investors worry about legal gaps that will cause severe damage.
The Digital Assets Act has been prepared in response to the emergence of the need to regulate behavior due to the Terra Luna incident last May. A consensus has emerged that there should be regulations on unfair practices in the virtual asset industry, such as insider trading and market manipulation.
Even after the Terra Luna incident, various incidents such as FTX bankruptcy, Rug-pull projects, and distribution volume disclosure issues continued. Especially when the virtual asset market entered a recession, rug pull activities became more popular. Rug pull is selling virtual assets to investors, closing the business, and disappearing.
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