Ando Geol Emphasizes the Need for Regulation of Financial Products Based on Virtual Assets

Ando Geol, a member of the Democratic Party, stated that the regulation of financial products based on virtual assets can no longer be delayed. At the seminar titled 'Digital Asset Financial Innovation Cases and Response Strategies' held at the Post Tower in Yeouido, Seoul, on the 10th, he emphasized the urgency of regulating digital assets and the financial products based on them. He diagnosed that digital assets are rapidly integrating with existing financial products and becoming central to the global capital market. He particularly mentioned that at the end of last year, the assets under management in the global digital asset exchange-traded product (ETP) market exceeded $180 billion, explaining that major countries such as the United States, the United Kingdom, and Hong Kong have already allowed financial products based on digital assets. Japan is also on the verge of introducing a digital asset spot ETF following amendments to its Financial Instruments and Exchange Act in July. In contrast, the establishment of related regulations in South Korea has been delayed, warning that this could put domestic investors and the financial industry at a competitive disadvantage. Ando noted that domestic investors' funds are flowing overseas, and domestic innovative companies are losing growth opportunities.