Ruling party, Virtual asset market 'Leverage trading' Permission promotion…Explicitly defining credit provision

The ‘Digital Asset Basic Law’ proposed by Democratic Party Representative Min Byung-deok includes a provision allowing credit offerings in the virtual asset market, and the introduction of full-scale leverage trading in South Korea is expected to be pursued. According to Hankyung.com, the bill explicitly allows credit offerings only for trading businesses, brokering businesses, and custodians among virtual asset operators.

Representative Min’s office explained the legislative intent by stating, “Credit offerings are clearly stated in the law to avoid being considered illegal or prohibited acts if there are no explicit regulations.”

This measure is interpreted as an attempt to provide an institutional framework for leverage trading based on virtual assets, which had been in an institutional vacuum domestically. However, if credit offerings are allowed, discussions are expected to continue regarding their impact on the market and whether investor protection measures will be established.