The contributor of this article, Jaehyun Park, is currently the CEO of Noone21, which operates Kleva AI, an incentive finance agent, and is a business advisor for Suhoio, a CBDC and stable coin specialist. If there is anyone who would like to share quality content for startups in the form of a contribution, please send the contribution and its purpose to the Venture Square editor team editor@venturesquare.net.
The 'Basic Digital Asset Act' submitted to the National Assembly in June 2025 is drawing attention as the first comprehensive legislative bill covering the entire cryptocurrency industry. This bill, sponsored by Representative Min Byeong-deok, goes beyond simple investor protection and includes content that includes transparency and stability of the entire digital asset ecosystem, as well as industry promotion. Recently, as the domestic market size exceeded 3,300 trillion won, concerns about regulatory gaps are growing, and this bill is an attempt to establish an institutional foundation.
The bill defines digital assets as “assets with economic value based on distributed ledger technology,” and divides them into asset-linked (stablecoins) and general digital assets. It clearly classifies business-specific acts that were not covered by existing laws, and based on this, it establishes a regulatory framework for various industries such as trading, brokerage, custody, and agency businesses. In particular, for stablecoins, the issuance requirements are limited to domestic corporations, and the Financial Services Commission’s approval, capital standards, and securing of refund reserves are mandatory.
These regulations are evaluated as advanced in level and scope compared to major overseas countries such as the EU's 'MiCA regulation' and Japan's JVCEA model. Investor protection devices such as separate storage of deposits, insurance and mutual aid subscription, preparation for hacking accidents, prohibition of unfair trade, and punishment of insider trading are also widely included. The 'Digital Asset Committee' directly under the president and the 'Korea Digital Asset Industry Association' centered on the private sector are each in charge of policy making and self-regulatory functions, and encourage public-private cooperation.
Issues of effectiveness such as technological change and response to unfair trade are highlighted
However, there are many tasks to be supplemented to increase the effectiveness of the bill. Above all, there is criticism that the 'regulatory flexibility' to keep up with the rapid pace of digital asset technology evolution is insufficient. There is a lack of detailed regulations on new types of assets such as NFT, DeFi, DAO, and on-chain unfair transactions through smart contracts. This is because the existing legal framework is difficult to regulate real-time transactions and complex algorithm-based transactions.
The division of roles between self-regulation and public regulation is also less specific than in advanced countries. Although some authority has been granted to the Korea Digital Asset Industry Association, there is criticism that it lacks manpower, budget, and independence. In addition, the excessive licensing standards can act as a market entry barrier for startups or small and medium-sized businesses, and this also requires improvement. It is necessary to ease entry requirements, apply phased regulations, and conduct regulatory experiments using the sandbox system.
The provisions related to stablecoins are also designed only for domestic issuers, raising the issue of interoperability with the global market. It is necessary to secure the acceptance criteria for major global coins such as USDT and USDC and consistency with international accounting and auditing standards. In addition, it is essential to strengthen the cooperation system with foreign supervisory agencies and establish an international information exchange protocol.
From a practical perspective, there is concern about market confusion as follow-up detailed standards such as accounting treatment, tax standards, external audits, and disclosure obligations have not been clearly established. It is urgent to establish guidelines through cooperation with financial authorities, the Accounting Standards Board, the National Tax Service, etc. In terms of victim relief, a practical compensation system such as professional dispute resolution procedures and class action operation should be supported.
Balance between regulation and promotion, follow-up policy refinement needed
Ultimately, the Digital Asset Basic Law is the legislative starting point for Korea to create a new order in digital finance. In order to advance to a digital finance hub with global competitiveness, we must flexibly respond to technological changes and continuously improve the legal and institutional foundations. Whether we can properly achieve a balance between regulation and promotion, protection and autonomy will likely be the key to the success or failure of this law in the future.
The Digital Asset Basic Act has made significant progress in establishing a Korean-style digital asset regulatory system, but follow-up legislation and policy refinement to ensure effectiveness remain as future tasks.
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