Representative Park Su-min believes that South Korean investors are being disadvantaged by legacy regulations that lack the flexibility of international standards. During the D-CON 2026 forum held at the Fairmont Ambassador Seoul, he articulated a vision that moves away from the historically defensive posture of domestic regulators toward a growth-oriented “US Plus” strategy. This approach aims to dismantle the rigid barriers that have long siloed the virtual asset market from the broader financial ecosystem. By fostering a more open and integrated environment, South Korea can potentially transition from a retail-driven speculative market to a global leader in digital finance. The proposed reforms focus on shifting the regulatory paradigm to treat digital assets as legitimate financial instruments rather than high-risk anomalies. This strategic pivot is intended to ensure the nation remains competitive as global markets increasingly adopt blockchain-based infrastructures for settlements and value transfer.
Modernizing Market Access and Institutional Participation
Ending the Banking Monopoly and Normalizing Digital Assets
A central component of the proposal is the immediate abolition of the “one exchange, one bank” rule, which currently forces exchanges to partner with a single domestic bank for real-name verified accounts. Park views this restriction as inherently discriminatory because it creates a bottleneck that stifles liquidity and suggests that digital assets are structurally inferior to traditional stocks or bonds. By allowing exchanges to work with multiple banking institutions, the government can foster a more competitive environment and significantly improve user convenience across the board. This change would effectively end the era where crypto-related transactions are treated with suspicion by financial institutions, allowing for a seamless flow of capital between traditional and digital realms. The normalization of these services is expected to lower the barrier to entry for the general public and reduce the fees associated with the current monopolistic structures.
Furthermore, dismantling this monopoly is a vital step toward rebranding the South Korean virtual asset industry as a trustworthy pillar of the modern economy. When investors have the freedom to choose their preferred banking partner for crypto transactions, the perceived risk of the asset class naturally decreases. This move also encourages banks to innovate and provide better security and insurance for digital deposits, as they must now compete for the business of various exchanges and their millions of users. Park emphasized that the current system effectively labels crypto investors as second-class citizens by limiting their banking options, a practice that has no place in a developed financial market. By aligning domestic banking practices with international norms, the proposal seeks to create a more resilient and transparent market architecture. This shift will likely lead to higher standards of corporate governance within exchanges, as they will be required to meet the auditing requirements of multiple financial institutions.
Opening the Gates to Professional and Corporate Capital
Historically, the South Korean crypto market has been heavily dominated by retail investors, a demographic concentration that has frequently led to extreme volatility and the persistent “Kimchi Premium.” Park urges the National Assembly to allow corporations and institutional investors to enter the market, bringing “professional capital” backed by rigorous research and long-term investment horizons. This influx of institutional participation would drive the development of sophisticated domestic infrastructure, such as advanced custody services and institutional-grade trading platforms, while maturing the market to a global standard. Currently, the exclusion of corporate players prevents South Korean firms from hedging against inflation or diversifying their balance sheets with digital assets, a practice that is becoming standard among global tech giants. By opening these gates, the government can stabilize price fluctuations and provide a more predictable environment for all participants.
The entry of professional capital is also expected to catalyze a surge in domestic financial technology innovation, as local firms seek to provide the complex services required by institutional clients. This includes the creation of decentralized finance protocols and asset management tools that meet strict regulatory and compliance standards. Park highlighted that without corporate involvement, the South Korean market remains an isolated island of speculation rather than a hub of productive economic activity. Institutional investors bring a level of analytical rigor that naturally flushes out fraudulent projects, as they require high levels of transparency and due diligence before committing funds. Consequently, this transition would protect retail investors by creating a more disciplined market environment where projects are evaluated based on fundamental value rather than social media hype. The development of a robust institutional sector would also attract foreign investment, as global funds look for reliable local partners to navigate the South Korean digital landscape.
Regulatory Philosophy and National Economic Sovereignty
Adopting Flexible Frameworks to Encourage Innovation
Park warns against the “trap” of overly detailed legislation that could inadvertently throttle fast-moving blockchain technologies before they have a chance to mature. Instead of rigid laws that may become obsolete within months, he advocates for a “loose framework” focused on core principles like anti-money laundering and the Travel Rule. This philosophical shift recognizes that blockchain technology is evolving at a breakneck pace, moving from simple token transfers to complex AI-driven agents and cross-chain interoperability. A principles-based approach allows the law to remain relevant regardless of the specific technology used, ensuring that innovation is not stifled by bureaucratic delays. By focusing on outcomes—such as consumer protection and financial stability—rather than specific technical implementations, the regulatory environment can remain agile enough to adapt to the next wave of digital breakthroughs.
To bridge the operational gap during the legislative process, the proposal suggests that regulators like the Financial Services Commission and the Financial Supervisory Service provide proactive “administrative guidance.” Such guidance would reduce business uncertainty by providing clear expectations for companies operating in legal gray areas, preventing them from being penalized for innovations that the law has not yet caught up with. This collaborative approach between the government and the private sector ensures that South Korea does not lose its brightest entrepreneurs to more permissive jurisdictions. Park argued that the fear of retroactive punishment is one of the greatest deterrents to domestic investment and that the government must provide a “safe harbor” for legitimate developers. By fostering a culture of open communication between regulators and innovators, the nation can build a regulatory regime that is both safe and conducive to rapid technological experimentation and growth.
Protecting the Korean Won via Stablecoin Development
Beyond domestic mechanics, Park frames the creation of won-denominated stablecoins as a matter of national economic sovereignty and long-term financial security. As dollar-backed stablecoins continue to dominate the global landscape, there is a legitimate risk that the Korean won could lose its international relevance in digital trade. By leveraging South Korea’s significant global influence in technology and culture, a won-pegged stablecoin could internationalize the currency and ensure it remains a viable tool in the borderless digital age. Such a digital currency would allow for instantaneous, low-cost international settlements, making South Korean exports more competitive and facilitating the global expansion of the nation’s service industries. This initiative is seen as a defensive necessity to prevent the “dollarization” of the digital economy, where domestic businesses are forced to rely on foreign-issued assets for their daily operations.
The development of a robust won-based stablecoin ecosystem would also provide the government with better tools for monitoring capital flows and ensuring the stability of the domestic money supply. Unlike unregulated offshore tokens, a locally regulated stablecoin would be fully transparent and backed by high-quality assets, providing a safe alternative for investors during times of market stress. Park suggested that the integration of the won into the global blockchain infrastructure would allow the currency to circulate more freely in the emerging decentralized finance sector, opening new avenues for wealth creation. This strategic move aligns with the broader goal of making South Korea a “hub” for digital transactions, where the won serves as a primary unit of account for regional trade. By taking the lead in stablecoin innovation, the nation can set the standards for how national currencies interact with private blockchain networks, ensuring that its economic interests are protected in a future dominated by programmable money.
Implementation Strategy and Future Market Outlook
Political Leadership and the “US Plus” Approach
The “US Plus” strategy involves adopting the high-level regulatory standards set by the United States and then enhancing them with local innovations to prevent South Korean investors from being disadvantaged. Park emphasized that this transition must be led by bold political decisions rather than risk-averse bureaucrats who may naturally lean toward restrictive policies to avoid potential liability. He called for urgent bipartisan cooperation to signal to the global market that South Korea is committed to a stable, predictable, and innovative regulatory environment. This political will is necessary to overcome the inertia of existing administrative structures that have historically been slow to embrace the digital transformation. By aligning with the United States, South Korea can ensure its regulations are compatible with the world’s largest financial market, facilitating cross-border partnerships and the exchange of technological expertise between the two nations.
Moreover, the emphasis on political leadership suggests that the future of digital assets is now a top-tier national priority that transcends simple financial regulation. Bipartisan support would provide the long-term consistency that institutional investors require before committing large amounts of capital to the domestic market. Park highlighted that the global competition for digital dominance is fierce, and nations that fail to provide a clear legislative roadmap will inevitably fall behind. Therefore, the “US Plus” approach is not just about copying foreign laws, but about creating a superior environment that attracts global talent and capital to Seoul. This strategy includes providing tax incentives for blockchain R&D and establishing special economic zones where digital asset companies can flourish. By positioning the government as a partner in progress rather than a hurdle, South Korea can send a powerful message to the international community that it is ready to lead the next phase of the global financial evolution.
Projecting the Impact on Market Liquidity and Growth
The implications of these proposed reforms suggest a neutral short-term outlook as the market waits for concrete legislative action and the formalization of new guidelines. However, once structural changes like institutional entry and the Framework Act on Digital Assets are fully implemented, a chain reaction of trust and research innovation is expected to follow. This evolution would solidify South Korea’s standing as a leader in the digital asset space, attracting both domestic and global participants to a modernized financial ecosystem. The increased liquidity from corporate players will likely reduce the volatility that has historically characterized the market, making it a more attractive destination for traditional wealth managers. Furthermore, the establishment of clear rules for stablecoins and custody services will provide the foundation for a new generation of financial products that were previously impossible under the old regulatory regime.
The forum concluded with a clear roadmap for the coming years, emphasizing that the legislative window for these reforms was rapidly closing as other nations accelerated their own digital initiatives. Park and his colleagues moved to establish a dedicated committee focused on drafting the specific language for the “US Plus” framework, seeking input from both technical experts and financial veterans. This proactive stance demonstrated that the government recognized the urgency of the situation and was prepared to take the necessary risks to secure the nation’s digital future. Investors were encouraged to look beyond short-term price movements and focus on the fundamental structural improvements being proposed, which would ultimately define the market’s trajectory. By prioritizing national competitiveness and sovereign value, the proposal sought to transform the South Korean digital asset landscape into a model of innovation and stability for the rest of the world.
