Butterfly effect caused by ‘Kim Nam-guk controversy’

Posted bycollagennewtree@gmail.com Posted onMay 21, 2023 Comments0

The recent controversy over the possession of virtual assets by Rep. Kim Nam-guk has had an unexpected effect. A typical example is the preaching of distributed ledger and block chain transparency to the public. Since it is possible to examine almost all transaction details with only some publicly available information, ‘investigation’ is being conducted in the private sector at a level where public authorities such as the prosecution and the police have intervened. Aside from political repercussions, the impact on society is not small.

Reminding that the value of virtual assets is highly volatile is one of the effects of this incident. It has been proven that even if you bet a lot with professional knowledge and full-time activities, you can lose a lot in an instant. In other words, the justification for bringing virtual assets into the institutional system has grown.

Coincidentally, around the time of this controversy, movements to regulate the most valuable asset by law are appearing all over the world.

The European Union ( EU ) confirmed the implementation of the ‘Virtual Asset Market Act’ ( Markets in Crypto Assets , MiCA ) this month. Two years and eight months after the bill was proposed, the world’s first virtual asset regulation law was created.

Mika includes comprehensive regulations focusing on the management and supervision of the virtual asset market, including cryptocurrency, and consumer protection. EUwill implement this law step by step after June next year. △Those who issue virtual assets must obtain accredited qualifications, and △If a buyer loses their assets due to hacking, etc., the issuer must take legal responsibility. It also gave financial authorities the authority to track whether money laundering is being done through virtual assets토토사이트

Domestic financial authorities are also preparing the ‘Virtual Asset User Protection Act (Virtual Asset Act)’. This law passed the National Assembly’s Political Affairs Committee this month. With the main focus of user protection, △customer deposit deposit and trust △store of the same item and same quantity as customer virtual assets △insurance/deduction or accumulation of reserves in preparation for hacking and computer failure △creation and storage of virtual asset transaction records are mandated. . In the case of unfair trade practices, such as the use of undisclosed important information, market manipulation, and illegal trading, the company should be subject to criminal punishment and be liable for damages. In addition, the Financial Services Commission may impose fines for violations of the law.

Both EU Mika and Korea’s virtual asset laws focus on user protection. Although virtual assets have grown based on the trust of a distributed ledger (blockchain), paradoxically, from the point of view of ‘investment’, it has concentrated wealth on a very small number of people and caused damage to many people.

The ruling and opposition parties plan to present the ‘Public Service Ethics Act Amendment’ to include virtual assets in the public officials property registration target at the main meeting held on the 25th of this month. If the law is passed, virtual assets held by public officials, including members of the National Assembly, will also be subject to reporting. It is a will to go one step further from user protection and block virtual assets from being used as a material that intervenes in the public domain or interests.

Some argue that the amendment to the Public Service Ethics Act should be treated as a set with the Virtual Asset Act, which has not yet passed the Judiciary Committee. Investors (public officials) and the ecosystem (virtual asset companies) must be managed within the system at the same time to be effective. There is a point.

As we are going through labor pains, Korea should take the lead in increasing the transparency and trust of virtual assets more actively, one step ahead. Korea is a place where advanced information and communication ( ICT ) technologies are accepted faster than any other region. It is necessary for us to first establish a global standard that others can see and learn from. It can turn on a ‘red light’ towards well-intentioned victims or those with public responsibilities who may be swayed by temptation to stop the sprint. Rather than consuming the ‘Kim Nam-guk incident’ as a political battle, we should use it as an opportunity to improve the system.

There is a limit to increasing the transparency and trust of virtual asset issuers and the market surrounding them with self-cleaning efforts in the industry. It’s time to put a fence on it and put management responsibilities on it.


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