South Korea's Democratic Party Forms Digital Asset Committee to Shape Cryptocurrency Policy

According to ShibDaily, South Korea's Democratic Party has launched a Digital Asset Committee to develop national cryptocurrency policies and promote growth in the digital asset sector. The committee, part of the Democratic Party's election campaign, held its inaugural meeting on May 13 at the National Assembly Members' Hall in Seoul. It aims to lead the formulation of digital asset policies by drafting campaign pledges, proposing legislation, and creating regulatory frameworks. Initial discussions have focused on the Basic Digital Asset Act, known as the 'Stage 2 Bill.' Rep. Min Byeon-deok chairs the Digital Asset Committee, highlighting its long-term goal of becoming a presidential-level body. He emphasized that aligning the committee under the president's office would enhance its expertise and ability to develop and implement effective policies. The committee is divided into two main divisions: the Industrial Innovation Growth Committee, led by Professor Kang Hyung-goo of Hanyang University, which seeks to bolster South Korea's position in the global digital economy, and the Policy and System Support Committee, led by Dr. Yoon Min-seop, tasked with creating legal and regulatory frameworks to support the country's digital asset landscape. The committee plans to include four subcommittees focusing on user protection, legal reform, industry growth, and fostering external cooperation. The meeting also addressed key digital asset issues raised during the presidential election, with stablecoins being a significant topic. Lee Jae-myung, the Democratic Party of Korea's candidate, advocated for a 'won-linked stablecoin,' while Lee Jun-seok, candidate for the New Reform Party, referenced the 'Terra-Luna incident' as a cautionary example. Chairman Min noted discussions on whether stablecoins should be subject to a licensing or reporting system, with the Bank of Korea involved in the debate over whether it or the Financial Services Commission should regulate them. As the digital asset landscape evolves, the Digital Asset Committee could significantly impact South Korea's financial system. With emerging technologies driving global change, the country's approach to regulation and innovation will be closely monitored by investors and policymakers. As discussions continue, South Korea stands at a critical juncture, poised to influence the broader digital economy.