South Korea's key right-wing party pushes for new law promoting crypto sector: report

People Power Party (PPP), a major right-wing political party of South Korea, officially announced Friday that it would promote a new bill aiming to promote the local crypto asset sector.

According to local news agency Newsis , Kim Sang-hoon, policy chief of the former ruling party, stated during a meeting that the nation needs to end the "era of uncertainty and regulation" and usher in an age of digital asset promotion.

"Due to the government's anti-money laundering efforts, an excessively regulation-focused policy is preventing foreign capital from entering the domestic virtual asset market," Kim reportedly said, adding that domestic capital is also leaving the local market for the same reasons.

Kim further called crypto an asset class of the new economy, with the potential to be the "21st-century gold" store of value.

"We hesitated, we were confused and unable to present a clear direction when faced with this new frontier," Kim said, according to the report. "We must now transition to efforts to actively foster and institutionalize digital assets."

The details of the upcoming bill, named the "Digital Asset Promotion Basic Act," is reportedly set to be announced next Monday.

South Korea's financial regulators are also making efforts to loosen strict rules on cryptocurrencies. The Financial Services Commission announced in January that it would gradually lift the ban preventing institutional investors from investing in cryptocurrencies.

An FSC representative said earlier this month that it may consider opening the door to foreign investors to trade in the local market, which is currently restricted.

In a related move, the FSC is actively pursuing legislation as a follow-up to the nation's first crypto regulatory framework, with a focus on stablecoin regulations, token listings and disclosure requirements.