2.1. Limitations of the existing system

Just a few years ago, blockchain business started with Bitcoin as if it was their own lowly faith. And the proliferation of blockchains with powerful scalable Mainnet called Ethereum. The virtual asset industry, which has grown at a tremendous rate like bamboo shoots growing in a squall, has become a gift-like opportunity and a risk to our generation. The sudden emergence of a new asset that has never existed in human history has caused numerous authorities to debate its intrinsic value and the truth and lies about its business model. It has caused constant debate among experts and has created new heroes and also created many victims. Also, whether the country wanted it or not, individuals around the world began to build their portfolios by attracting virtual assets into their economies. No one could break the ecosystem of virtual assets that naturally arose from human wisdom and greed.

Contrary to Bitcoin's original intention of decentralization, centralized exchanges emerged in response to market needs for new asset trading, and laws and regulations standard, Investors who could not distinguish between light and dark before the power to control was ready were left to become victims of information asymmetry and a situation where they could not even identify the pia. Currently, the minimal laws and safeguards are standing up as a precarious shield to protect investors in the nascent virtual asset industry. Among the minimum safeguards, Information Security Management System(ISMS) certification is a mandatory requirement for operating as a virtual asset service provider (VASP) in Korea (the Specific Financial Information Act will be fully implemented on September 25, 2021). The Korea Internet & Security Agency (KISA), a certification agency under the Ministry of Science and ICT, supervises and conducts certification examinations. However, the criteria for distinguishing virtual asset operators are still unclear and ISMS After obtaining certification, it is very difficult to report to the Financial Intelligence Unit (FIU) as a virtual asset business operator and conduct normal business. This could easily lead to monopolies and hinder the healthy growth of the industry and its global competitiveness.

ISMS certification, which is an essential prerequisite for operating a virtual asset business at the present time, is so important that it can be considered almost all of the reporting conditions, and the level required by the certification standards is so high that it is close to the level of existing financial institutions.

On the other hand, unlike other industries where the authentication failure rate is less than 5%, More than half Significant administrative, the final certification was not obtained due to insufficient technical security standards and conflicting regulatory standards.

This can be seen as a major reason why the virtual asset business was pushed forward only with a business model that was believed to be innovative, without even having sufficient security levels in place.