Abstract

The recognition of the legal and economic value of virtual assets or digital assets in digital spaces is evolving. Recent developments have seen Bitcoin and Ethereum ETFs approved in the U.S. and Hong Kong, establishing virtual assets as recognized investment products. Against this backdrop, the European Union (EU) and South Korea have passed laws regulating virtual assets, yet the reality is that ongoing confusion prevails due to insufficient discussion amidst these rapid changes. The incomplete legal framework, confusion over government departmental responsibilities, and domestic restrictions on new industries like GameFi are particularly problematic. Current legislation, which fails to reflect the new status of virtual assets, makes it increasingly difficult to effectively respond to virtual asset crimes, necessitating the establishment of clear legal definitions and handling of virtual assets. In this context, the current virtual asset legislation needs to focus more on addressing fraudulent activities like unfair trading practices, and there is an urgent need to explore improvements in regulatory specifics and corresponding criminal law treatments, including crime investigation methods.