the Democratic Party launches the crypto Committee

The Partito Democratico della Corea del Sud , the main political force of the country, has officially established a new body dedicated to the development and regulation of the crypto sector. The Committee for Digital Assets held its first meeting on May 13 in the Members’ Hall of the National Assembly in Seoul, marking a significant step towards more structured governance of digital assets in the country. This move is part of a context of growing global attention towards valute digitali . In particular, stablecoin , and it reflects South Korea’s desire to position itself as a significant player in the cryptocurrency landscape. A new initiative to regulate and promote the crypto sector in South Korea During the inaugural meeting, the committee members emphasized the urgency of addressing the regulatory uncertainty that still surrounds the sector. Among the priorities that emerged, the need to regulate stablecoin – particularly those pegged to the US dollar – and to define a regulatory framework that promotes both investor security and technological innovation stands out. The committee aims to actively collaborate with regulatory authorities to resolve existing issues and create a favorable environment for the growth of the sector. The objective is twofold: on one hand, to protect consumers; on the other, to encourage the development of a competitive and transparent ecosystem. A distinctive element of the new committee is its mixed composition, which includes both prominent political figures and representatives from the private sector. Among the members are Min Byeong-deok , president of the National Assembly and now also president of the committee, Yoon Yeo-joon , president of the permanent general electoral committee. Finally, Maeng Seong-gyu , president of the committee for muksanism. To these are added Kim Byeong-gi , member of the National Assembly, and the former president of the Assembly Kim Jeong-woo . According to ChosunBiz, the committee will also include executives from the main South Korean cryptocurrency exchanges , including Upbit , Bithumb , Coinbit , and Gopax . This integrated approach aims to ensure that the policies developed are realistic, effective, and in line with the needs of the market. One of the most debated topics during the first meeting was the system currently in place in South Korea, known as “una borsa, una banca” . This regulation requires cryptocurrency exchanges to collaborate with only one banking institution, effectively limiting competition and operational flexibility. The president Min Byeong-deok expressed strong doubts about this rule, describing it as lacking and inadequate compared to the needs of a rapidly evolving market. It also announced that the committee is working with regulatory authorities to find a solution that allows for greater openness and competitiveness in the sector. “`html The issue of stablecoin regulation “` Another crucial point addressed by the committee concerns the regulation of stablecoins, digital financial instruments that are increasingly widespread and at the center of international debate. In particular, the need has emerged to clarify which entity should have the supervision of these currencies: the Bank of Korea or the Financial Services Commission (FSC). Min emphasized that there are divergences on this topic and that it will be crucial to determine whether stablecoins should be subject to a system of licenses or simply to a reporting regime . The issue is particularly delicate, considering the impact that these currencies can have on monetary policy , financial stability , and the payment system . The concerns expressed by the committee are echoed within the Bank of Korea as well. In a conference held on May 12, Koh Kyung-chul , an executive of the central bank, expressed concerns about the issuance of stablecoins pegged to the South Korean won . According to Koh, the introduction of these currencies could compromise the effectiveness of central bank policies, particularly in the monetary field and in the management of financial stability. For this reason, he hoped for a direct intervention of the central bank in the approval phase of stablecoins. This is in order to minimize the negative effects on the national economic system. An evolving ecosystem: the role of institutions The new committee joins other initiatives already launched in South Korea, such as the Virtual Asset Committee , established at the end of 2024 by the Financial Services Commission, and a public-private task force on criptovalute created in 2022. These organisms reflect a growing institutional commitment to regulating a sector in constant transformation. The creation of the Committee for Digital Assets therefore represents a further step towards building a solid regulatory ecosystem . Thus capable of supporting innovation without sacrificing the security and stability of the financial system. With the establishment of the Committee for Digital Assets, South Korea confirms its willingness to take a leading role in the global cryptocurrency landscape. In a moment when stablecoin and digital assets are redefining international economic dynamics, the Asian country is preparing to respond with adequate regulatory tools and inclusive governance. The direct involvement of politicians, regulators, and industry operators demonstrates a pragmatic and future-oriented approach. This could become a benchmark for other countries dealing with the challenges of finanza digitale . Source: https://en.cryptonomist.ch/2025/05/13/south-korea-the-democratic-party-launches-the-committee-for-crypto/