"U.S. Rapidly Enacts Crypto Legislation... South Korea Risks Falling Behind and Facing Exchange Rate Instability"

Crypto Asset Legislation Concert

First Legislation Targets Unfair Trading Regulation

Second Legislation Needed for Ecosystem Development

Trump Aims to Strengthen Dollar Hegemony

Supports Crypto Assets like Stablecoins

Exchange Rates May Rise Amid Growing Uncertainty

Participants are discussing at the 'Crypto Assets in the Trump 2.0 Era and Domestic Second Legislative Tasks' legislative concert held at the National Assembly on the 10th. The legislative concert was co-hosted by Hankyung, Kim Jae-seop of the People Power Party, and Pacific Law Firm, and organized by the Digital Asset Exchange Joint Council (DAXA). Reporter Kang Eun-gu

After Donald Trump, who calls himself the 'Crypto President,' took office, there has been a call to expedite the second domestic crypto asset legislation. Amid fierce global competition for crypto asset dominance, warnings have emerged that increased uncertainty could lead to a decline in the value of the Korean won.

Participants at the 'Crypto Assets in the Trump 2.0 Era and Domestic Second Legislative Tasks' legislative concert, co-hosted by Hankyung, Kim Jae-seop of the People Power Party, and Pacific Law Firm, and organized by the Digital Asset Exchange Joint Council (DAXA), agreed that "the first crypto asset legislation alone has significant limitations for industry development." In South Korea, the Crypto Asset User Protection Act, which focuses on user asset protection and unfair trading regulation, has been in effect since July last year. The second phase of legislation is expected to include the introduction of a crypto asset disclosure system akin to capital market disclosures and the establishment of regulations on unfair business practices by crypto asset operators.

Experts analyzed that President Trump has highlighted crypto assets as a major theme to maintain dollar hegemony while strengthening leadership in digital assets. Kim Min-seung, head of research at Korbit, who gave a presentation, said, "The U.S. is supporting the growth of stablecoins linked 1:1 to the dollar to strengthen dollar hegemony," and predicted that "with the Republican Party controlling both houses in the Trump 2.0 administration, legislation will change rapidly, and 'Crypto Killer Apps' like Facebook could emerge." He added, "Should Korea just follow along while another killer app is created in the U.S.? We need to quickly resolve uncertainties and create an ecosystem for the industry to grow."

There were also concerns that legislative uncertainty regarding crypto assets could negatively impact exchange rates. Kim Hyo-bong, a lawyer at Pacific Law Firm, emphasized, "Stablecoins have reached a point where they can influence exchange rates, and if we remain passive, the value of the won could fall," adding, "We need to clearly define whether crypto assets are investment assets or payment means, and discuss whether the issuance of won-based stablecoins is necessary." Kim Seong-jin, head of the crypto asset division at the Korea Financial Services Commission, also stated, "I fully agree that legislation on stablecoins needs to be expedited."

There was also a call to prioritize and push forward with crypto asset legislation. Lee Jeong-su, a professor at Seoul National University Law School, emphasized, "Since crypto asset exchanges hold a monopolistic position in the market, regulatory measures should be discussed first," and added, "We also need to determine how to classify and regulate crypto-related businesses." Experts also suggested that it is essential to check for any overlapping regulations. Kim Jae-seop emphasized, "South Korea needs to match the policy speed of the U.S. and supplement transparency and safety with a system that meets global standards."

Reporter Seulgi Lee surugi@hankyung.com

Reporter Soram Jeong ram@hankyung.com