In the 2024 National Assembly audit, the cryptocurrency industry has once again seen the exclusion of witnesses and references for the second consecutive year. This is largely due to the spotlight being drawn to major financial incidents in the banking sector, leaving cryptocurrency issues pushed aside. The recent financial turmoil, such as the mismanagement and embezzlement in financial institutions like Woori Financial and NH Nonghyup, overshadowed the concerns of the cryptocurrency sector.
Despite the implementation of the Cryptocurrency User Protection Act in July 2024, follow-up legislative discussions and regulatory reviews have not progressed. Many in the industry express concern that despite significant issues, such as the collapse of smaller exchanges and ongoing fraud scandals, the government and political sectors have largely neglected these matters. Additionally, the absence of key cryptocurrency experts in the Political Affairs Committee has further marginalized the industry’s concerns.
Opinions within the cryptocurrency industry are divided. Some see it as fortunate that they avoided the aggressive questioning typical of the audit process. However, there is growing frustration that critical issues, such as the institutionalization of Security Token Offerings (STO) and the next steps for cryptocurrency legislation, were not addressed. The industry fears that delays in these areas could hinder its growth and regulatory clarity.
Legislation for STOs, which was initially pursued in the 21st National Assembly, was anticipated to move forward in the 22nd assembly but has so far not received the necessary attention. While lawmakers such as Kim Jaeseop from the People Power Party and Min Byung-deok from the Democratic Party of Korea have plans to propose related bills, it remains uncertain when these discussions will take place.
The industry is calling for an urgent review of the market, especially in light of the recent exchange closures and the ongoing issue of returning user assets from defunct exchanges. Many argue that comprehensive oversight and follow-up legislation are critical for market stability and user protection
As the first national audit of the 22nd National Assembly unfolds, the cryptocurrency industry hopes that the issues sidelined during this round will be brought back to the forefront of political discussions in the near future.
