South Korea's Democratic Party pushes for crypto regulatory reform, establishes Digital Assets Committee to strengthen policy leadership

As the presidential election on June 3 approaches, South Korea's Democratic Party has made cryptocurrency regulation one of its core campaign issues by establishing a "Digital Assets Committee" aimed at centralizing cryptocurrency policy-making authority in the presidential office. The committee held its first meeting on May 13 at the National Assembly in Seoul, bringing together lawmakers, government officials, and local exchange representatives. Committee Chairman Min Byeong-deok stated that the current "one exchange, one bank" system limits the development of the cryptocurrency business and urgently needs reform.

The committee is drafting key legislation known as the "Second Phase Bill," aimed at establishing South Korea's digital asset framework, covering regulatory innovation and user protection. Additionally, stablecoin regulation has become a focal point of discussion, especially stablecoins pegged to the Korean won. Democratic Party presidential candidate Lee Jae-myung advocates for a rapid market launch and proposes issuing a Korean won stablecoin. However, the Bank of Korea (BOK) insists on participating in discussions at an early stage to prevent instability in national monetary policy.

This reform aims to promote the development of the cryptocurrency industry and attract the support of young voters. It is reported that over 16 million people in South Korea are involved in cryptocurrency trading.