South Korean Experts Criticize Proposed Digital Asset Regulations

Legal and academic experts in South Korea have expressed concerns over the proposed Digital Asset Basic Act, arguing that it could stifle innovation and lead to legal challenges. According to NS3.AI, the criticism centers on ownership limits for virtual asset exchanges and stablecoins, which experts believe could hinder the growth of the crypto sector. The proposed regulations aim to apply traditional securities exchange rules to crypto exchanges and restrict stablecoin issuance to consortiums with bank majority ownership. Experts suggest that regulation should be driven by market dynamics, warning that the current proposals may impede private sector initiatives in emerging areas.