Seminar on ‘the Implementation of the Virtual Asset User Protection Act and the Introduction of Spot ETFs for Virtual Assets: Challenges and Future Prospects’

On July 18, Lee & Ko hosted a seminar on ‘the Implementation of the Virtual Asset User Protection Act and the Introduction of Spot ETFs for Virtual Assets: Challenges and Future Prospects’.

This seminar, which was conducted both online and offline, addressed key considerations and cautionary notes regarding the Virtual Asset User Protection Act through presentations and discussions from legal, practical, and policy perspectives. Additionally, it explored the current trends and future prospects related to the introduction of spot ETFs for virtual assets.

In the first session, Vice President Jay Jaejin Kim of the Digital Asset Exchange Alliance (DAXA) delivered a presentation on “Recommendations related to the Implementation of the Virtual Asset User Protection Act.” Vice President Kim offered practical and policy-oriented guidance on legal issues and key points regarding Korea’s first comprehensive regulation on the virtual asset market. In particular, Vice President Kim highlighted critical practical issues facing virtual asset businesses, such as the necessity for issuing real-name accounts for corporations.

Subsequently, a panel discussion moderated by Lee & Ko’s partner Jongsoo Yoon was held. The panel included Wontae Sim, Deputy Director of Virtual Asset Division at the Financial Services Commission; Dr. Kab Lae Kim, Head of Financial Law Research Center of the Korea Capital Market Institute; Juhyun Lee, Head of Strategic Legal Division at Bithumb; and Lee & Ko’s partner Wooyoung Choi. The panel shared insights on various issues related to the Virtual Asset User Protection Act, including tax issues concerning virtual assets, the possibility of arbitrage transactions to constitute unfair trade practices, and crypto staking.

In the second session on the topic of “Considerations for the Introduction of Spot ETFs for Virtual Assets”, Lee & Ko’s partner analyzed the current trends and future outlook regarding the introduction of spot ETFs for virtual assets by providing an in-depth examination of Korea’s current regulatory landscape and discussed the positions of global supervisory authorities, including the SEC of the U.S.

Lastly, a panel discussion moderated by Lee & Ko’s partner Hyunkoo Kang featured Dr. Jaydon Lee, Senior Research Fellow of the Korea Institute of Finance, Mr. Yongjae Lee, Senior Manager at Mirae Asset Securities, Suhan Cho, Chief Legal Officer at Uprise, and Lee & Ko’s partner Jingun Kim. The discussion covered the significance of introducing spot ETFs for virtual assets in the industry, a comparative analysis of the situations in the U.S. and Korea regarding the introduction of spot ETFs for crypto assets, and the legal and policy frameworks necessary for the introduction of spot ETFs for crypto assets.