A representation of the virtual cryptocurrency Bitcoin / Korea Times photo by Shim Hyun-chul

The National Assembly audit this year is once again expected to overlook the virtual asset market, similar to last year, as no witnesses in the field have been selected.

The Assembly's National Policy Committee, responsible for fiscal oversight, recently finalized a list of individuals to be questioned during the audit sessions, which are scheduled to begin on Thursday, starting with the Financial Services Commission (FSC), the country's top financial regulator.

Among the witnesses selected were Woori Financial Chairman Yim Jong-yong and Qoo10 CEO Ku Young-bae as well as Kim Kwang-il, a partner at MBK Partners. However, no witnesses related to virtual assets were included in the list.

Industry officials noted virtual assets have taken a back seat due to other incidents that caused significant controversy in the financial sector.

Woori Financial Group has faced criticism over huge inappropriate loans extended to relatives of its former chief, while Singapore-based e-commerce platform Qoo10 has been at the center of controversy over the massive cash crunch at its two Korean affiliates — TMON and WeMakePrice.

Kim from the private equity firm has overseen the high-profile tender offer for Korea Zinc.

As a result, the virtual asset sector has been left out of the Assembly audit for the second consecutive year. Last year's audit did not include any witnesses related to the industry, either.

In the 2022 audit, when the virtual asset industry faced major challenges such as the Terra-Luna crisis, the committee selected several witnesses, including Lee Sirgoo, the CEO of Dunamu, which operates the nation's leading cryptocurrency exchange Upbit.

Nevertheless, calls to address issues related to virtual assets in the Assembly audit continue to be raised.

With about three months having passed since the implementation of the Virtual Asset User Protection Act, there is a call to assess the current situation following its enactment.

In addition, given the wave of virtual asset exchange closures this year, the status of asset returns from these closed exchanges is being highlighted as a critical issue that must be examined.

"There is concern that if virtual asset-related issues are not addressed in the Assembly audit, discussions on the second phase of the act could be further delayed," an official from a cryptocurrency exchange said.

Other officials expressed disappointment over a low level of interest or understanding by the committee members regarding virtual assets.

The act came into effect this year after consolidating 19 bills related to virtual assets from the previous 21st Assembly, which ended its tenure in May.

Most of the lawmakers who proposed these 19 bills either failed to be re-elected or moved to other committees. This means that there are currently very few "experts" with experience in proposing virtual asset-related legislation within the committee.

"It is seen that the current committee members who are not familiar with virtual assets are in the process of adapting," another industry official said. "There seems to be a greater need for communication with the industry."