South Korea’s Democratic Party has launched a Digital Asset Committee aimed at formulating comprehensive cryptocurrency policies and fostering industry growth. The committee convened its inaugural meeting on May 13 at the National Assembly Members’ Hall in Seoul.
The committee’s primary objectives include resolving regulatory uncertainties and addressing pressing issues such as stablecoin regulation, particularly in light of the global push for U.S. dollar-pegged stablecoins. This initiative aligns with similar efforts in the country, including the Virtual Asset Committee established by the Financial Services Commission in late 2024.
Leadership of the Digital Asset Committee comprises prominent figures such as National Assembly Chairman Min Byeong-deok, who serves as the committee’s chairman. Other notable members include Yoon Yeo-joon, Chairman of the Standing General Election Committee; Maeng Seong-gyu, Chairman of the Muksanism Committee; National Assembly member Kim Byeong-gi; and former National Assembly Chairman Kim Jeong-woo. Executives from major local cryptocurrency exchanges, including Upbit, Bithumb, Coinbit, and Gopax, are also participating in the committee.
During the opening meeting, Chairman Min expressed concerns over the existing “one exchange, one bank” policy, which restricts crypto exchanges to partnering with a single financial institution. He highlighted the limitations of this approach and indicated that the committee is collaborating with regulators to address the issue.
The committee is also engaging in discussions regarding the appropriate regulatory body for overseeing the stablecoin industry and whether stablecoins should be subject to a licensing or reporting system. Debate continues over whether the Bank of Korea or the Financial Services Commission should assume primary regulatory responsibility.
This development follows recent remarks by Koh Kyung-chul, an executive at the Bank of Korea, who emphasized the significant impact of stablecoins on central bank policies, including monetary policy, financial stability, and payment settlements. He advocated for the central bank’s active involvement in the approval process to mitigate potential negative effects on policy implementation.
The establishment of the Digital Asset Committee underscores South Korea’s commitment to advancing its digital asset framework and ensuring the secure and efficient integration of cryptocurrencies into its financial system.
