Democratic Party of Korea Establishes ‘Digital Asset Committee’

Key Takeaways

• Chairman Min described the ‘one exchange one bank’ policy as inadequate for current market conditions
• The committee’s stated objectives are to enhance consumer protection and support the development of a transparent and competitive digital asset environment 

The Democratic Party of Korea formed a new committee called the Digital Asset Committee, which is tasked with addressing regulatory challenges and supporting the growth of the crypto sector in South Korea. The committee held its inaugural meeting at the National Assembly Members’ Hall in Seoul.

Min Byeong-deok, Speaker of the National Assembly, has been appointed chairman of the committee. Other members include Yoon Yeo-joon, chairman of the permanent general electoral committee; Maeng Seong-gyu, chairman of the muksanism committee; National Assembly member Kim Byeong-gi; and former Assembly Speaker Kim Jeong-woo. Representatives from major South Korean crypto exchanges—Upbit, Bithumb, Coinbit, and Gopax—are also expected to participate.

During the meeting, the “one exchange, one bank” policy was discussed. This regulation currently limits crypto exchanges to working with a single banking partner. Chairman Min described the rule as inadequate for current market conditions and confirmed that the committee is in discussions with regulators to consider alternatives.

The committee’s stated objectives are to enhance consumer protection and support the development of a transparent and competitive digital asset environment through coordinated policy-making with regulatory authorities.

As per reports, a major item on the meeting agenda  was the regulatory oversight of stablecoins. Talks and discussions were reporteldy held on whether stablecoin oversight should fall under the Bank of Korea or the Financial Services Commission (FSC).

Chairman Min noted that the committee is examining whether stablecoins should be governed by a licensing system or a reporting requirement.

On May 12, Bank of Korea executive Koh Kyung-chul also addressed concerns about the issuance of stablecoins tied to the Korean won, highlighting their potential implications for financial stability and monetary policy.

The latest development comes days after Kim Moon-soo, the presidential candidate from South Korea’s Kim of the People Power Party announced support for local adoption of spot crypto exchange-traded funds as a poll plank.