South Korea’s Political Shift: New Crypto Laws and Digital Asset Push Ahead of Crucial June Election

EddieJayonCrypto

 26 May 25

tl;dr

South Korea’s Democratic Party of Korea (DPK) has established a digital asset committee to promote adoption and develop supportive regulations ahead of the June 3 presidential elections. Led by pro-crypto legislator Min Byeong-deok, the committee aims to address regulatory uncertainties, embrace fut...

South Korea’s Democratic Party of Korea (DPK) has formed a digital asset committee to boost adoption and create supportive regulations ahead of the June 3 presidential elections. Led by pro-crypto legislator Min Byeong-deok, the committee aims to promote future finance assets like stablecoins, NFTs, and security token offerings, positioning South Korea as a global financial hub.

Min Byeong-deok, the key figure behind the Digital Asset Basic Act, will push for laws that protect investors and nurture the digital asset industry. The committee includes lawmakers, party officials, major crypto exchange representatives from Bithumb, Upbit, and Coinbit, as well as industry experts and academics.

Both major political parties, including the People Power Party (PPP), pledge to repeal the restrictive ‘one exchange, one bank’ rule that limits crypto exchanges by requiring them to partner with a single bank. This move addresses issues many smaller exchanges faced in securing banking partners. PPP candidate Kim Moon-soo, although trailing in polls against DPK’s Lee Jae-myung, also supports investor protection and the rule’s abolition.

Meanwhile, the Bank of Korea (BOK) seeks regulatory authority over won-pegged stablecoins, citing their potential to disrupt monetary policy and financial stability. Although USD-pegged stablecoins dominate South Korea’s crypto market, local stablecoins are emerging, prompting BOK’s call for oversight in authorization and regulation.

This demand has sparked debate among legislators about whether the central bank or the Financial Services Commission (FSC) should regulate stablecoins. Min Byeong-deok expressed that the forthcoming administration will evaluate which body is best suited to oversee stablecoins.

The evolving regulatory landscape reflects South Korea’s efforts to reconcile innovation with stability in a sector that includes 16 million digital asset holders. With Lee Jae-myung leading the polls, the future of crypto regulation in South Korea appears poised for significant changes that could impact global financial markets.