As South Korea’s presidential race heats up, the Democratic Party’s new Digital Asset Committee denote a political shift, setting crypto law and industry reform central to national policy strategy.
South Korea shook its presidential race on May 13 whilst the Democratic Party revealed a Digital Asset Committee, vowing to put crypto law directly into the next president’s workplace. The committee, formed below the party’s election campaign arm, held its first meeting on Tuesday at the National Assembly Members’ Hall in Seoul.
Local news corporation, News1, reported that the action comes as digital assets become a key problem in the upcoming presidential election.
The committee will play a important role drafting pledges, using legislation, and building frameworks for digital assets, with early discussions focused on the Basic Digital Asset Act, called the “Stage 2 Bill.”
South Korea’s Digital Asset Committee to Draft Crypto Laws, Push Industry Reform
Rep. Min Byeong-deok leads the committee as chairman. He emphasized the long-term vision, sating
“The aim is to make the Digital Asset Committee straight below the president so that it could have expertise and enforce actual policies.”
The committee is structured around two essential groups. The Industrial Innovation Growth Committee, chaired by Professor Kang Hyung-goo of Hanyang University, will consciousness on enhancing South Korea’s leadership in the global digital economy.
The Policy and System Support Committee, led via Dr. Yoon Min-seop, will work on laws and regulatory frameworks. In addition, four subcommittees will manage user safety, legal reform, enterprise growth, and external cooperation.
Experts from exchanges and blockchain corporations will participate, reflecting a mix of administration and private sector involvement.
Stablecoins have been some of the subjects raised in the launch meeting. The debate additionally reflects developing political interest.
Democratic Party presidential candidate Lee Jae-myung earlier supported a won-linked stablecoin, while rival applicants raised worries, bringing up past failures like the Terra-Luna collapse.
“There are discussions whether or not stablecoins should be subject to a licensing system or a reporting system,” Chairman Min mentioned. “There is also debate over whether the Bank of Korea or the Financial Services Commission ought to lead regulation.”
Bank partnerships with crypto exchanges had been additionally mentioned. Currently, one alternate usually pairs with one bank.
Min recounted this as a limitation, announcing, “There are clean shortcomings to the one-exchange-one-bank precept.”
Yoon Yeo-jun, a senior official with the marketing campaign, warned that uncertain policies are pushing corporations and investors aboard.
“We need to resolve those troubles at some stage in the presidential election,” he stated, “and attain both marketplace growth and investor protection.”
South Korea’s Central Bank Clashes With Lawmakers Over Stablecoin Control Amid Election Heat
As South Korea’s Democratic Party drives forward with its new Digital Asset Committee, the Bank of Korea (BOK) is drawing a organization line on who need to oversee the country’s stablecoin future.
Stablecoins, especially the ones pegged to the Korean gained, have hastily emerge as a prime point of contention within the lead-up to the June 3 presidential election.
On May 12, BOK officials publicly stated that they ought to have very last authority over the approval and issuance of KRW-based totally stablecoins, citing dangers to monetary policy and financial stability.
Koh Kyung-chul, head of the bank’s electronic finance unit, warned that except the central bank from early discussions should undermine national monetary manage. He emphasized that legal frameworks should be crafted with enter from the BOK to keep away from destabilizing the country’s economic ecosystem.
The debate comes as Democratic Party candidate Lee Jae-myung demand South Korea to “enter the stablecoin market fast,” warning that delays ought to lead to capital flight.
Meanwhile, People Power Party candidate Kim Moon-soo has promised to allow major government funds to invest in digital assets in virtual property and helps institutional reforms to legitimize crypto.
With over 16 million Koreans committed in crypto, virtual asset policy has become defining issue, remodeling the election into a showdown among central bank caution and political ambition.
