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South Korea’s Democratic Party has launched a new Digital Asset Committee to lead crypto policy development and accelerate industry growth. The group’s first meeting took place on May 13 at the National Assembly Members’ Hall in Seoul.
Political push to clarify crypto rules
The move reflects growing political interest in cryptocurrency regulation. The committee aims to reduce regulatory confusion, especially around stablecoins, which are getting attention globally due to U.S. dollar‑pegged assets.
This new body joins a growing list of local crypto initiatives, including the Virtual Asset Committee launched in late 2024 and a 2022 public‑private task force, both set up by South Korea’s Financial Services Commission (FSC).
Key officials and exchanges involved
Led by Min Byeong‑deok, chairman of the National Assembly, the committee includes several high‑profile lawmakers and political leaders:
Yoon Yeo‑joon, general election committee chair
Maeng Seong‑gyu, Muksanism Committee chair
Kim Byeong‑gi and Kim Jeong‑woo, current and former National Assembly members
It will also include executives from major South Korean exchanges like Upbit, Bithumb, Coinbit, and Gopax — a sign that industry collaboration is a priority.
Targeting banking rules and stablecoin oversight
At the meeting, Min criticized the country’s “one‑exchange‑one‑bank” rule, which limits exchanges to just one banking partner. He called for policy updates, saying:
“There are clear shortcomings to the one exchange, one bank principle.”
The committee is also debating which agency should regulate stablecoins — the Bank of Korea or the FSC — and whether a licensing or reporting model makes more sense.
Bank of Korea warns of policy risks
The timing is notable. Just a day before, Koh Kyung‑chul of the Bank of Korea warned that stablecoins could undermine monetary policy, financial stability, and payment systems.
“Central banks must intervene at the approval stage to minimize negative effects,” he said.
With elections on the horizon and stablecoins in the spotlight, South Korea’s crypto future is becoming a central political issue — not just a regulatory one.
