On October 10, Han Jeong-ae, the policy chief of the Democratic Party of Korea, addressed the recent overpayment incident involving Bitcoin at the cryptocurrency exchange Bithumb, labeling it a significant threat to the trustworthiness of virtual assets. She stated that the incident highlighted vulnerabilities in the internal controls and bookkeeping practices of even major exchanges in South Korea. With over 11 million users engaging with cryptocurrency exchanges, increasing transactions in various token securities and stablecoins are anticipated, emphasizing the urgency of legislative reforms.

During a party meeting, Han emphasized the necessity of the Digital Asset Basic Law as part of a two-step legislative framework for virtual assets. The proposed law aims to establish mandatory internal control standards, conduct periodic assessments of asset holdings, and impose strict liability on cryptocurrency operators in the event of system failures. Furthermore, the law would include provisions for the eligibility examination of major shareholders to enhance governance within the sector.

Separately, the National Assembly's Political Affairs Committee is scheduled to hold an urgent inquiry session with financial regulators, including the Financial Services Commission, Financial Supervisory Service, and the Financial Intelligence Unit, on October 11. This session will delve into the implications and management of the recent Bithumb incident, further showcasing the government's commitment to addressing the structural issues within the cryptocurrency exchange landscape in South Korea.