The largest political party in South Korea, the Democratic Party, has launched a Digital Asset Committee focused on developing cryptocurrency policies and promoting industry growth.<\/p>\n
The committee held its inaugural meeting at the National Assembly Members\u2019 Hall in Seoul on May 13, the local news agency News1 reported<\/a>.<\/p>\n During its first meeting, the committee highlighted the importance of resolving regulatory uncertainty and addressing burning issues like stablecoin<\/a> regulation amid the push for US-dollar stablecoins<\/a> by the US government.<\/p>\n The new committee joins similar organizations in South Korea, including the Virtual Asset Committee<\/a>\u00a0launched<\/a>\u00a0in late 2024 and another public-private crypto task force\u00a0introduced<\/a>\u00a0in 2022, both initiated by the Financial Services Commission (FSC).<\/p>\n The leadership of the Digital Asset Committee includes South Korean officials and politicians such as National Assembly chairman Min Byeong-deok, who joins the committee as chairman.<\/p>\n Additionally, the organization features standing general election committee chairman Yoon Yeo-joon, Muksanism Committee chairman Maeng Seong-gyu, National Assembly member Kim Byeong-gi and former National Assembly chairman Kim Jeong-woo.<\/p>\n Digital Asset Committee chairman Min Byeong-deok, Yoon Yeo-jun, Maeng Seong-gyu and Kim Jeong-woo (from left to right). Source: News1<\/em><\/p>\n According<\/a> to a report by ChosunBiz, the committee will also include participation of executives from major local exchanges, including Upbit, Bithumb, Coinbit and Gopax.<\/p>\n At the opening meeting, committee chairman Min expressed concerns regarding limitations of South Korea\u2019s current one-exchange-one-bank rule<\/a>, implying that crypto exchanges are restricted to collaborating with only one lender.<\/p>\n \u201cThere are clear shortcomings to the one exchange, one bank principle,\u201d Min reportedly said, adding that the committee is working with regulators to resolve the issue.<\/p>\n The chairman also mentioned discussions on which regulators should be responsible for supervising the stablecoin industry and whether stablecoins should be subject to a licensing system or a reporting system.<\/p>\n Related: <\/strong><\/em>South Korea presidential front-runner pledges to approve Bitcoin ETFs<\/strong><\/em><\/a><\/p>\n \u201cThere is also a point of contention as to whether the Bank of Korea or the FSC should handle the regulation,\u201d he reportedly said.<\/p>\n The news came shortly after a Bank of Korea executive expressed concerns over the issuance of the South Korean won-backed stablecoins.<\/p>\n \u201cStablecoin has a great impact on the implementation of central bank policies such as monetary policy, financial stability, and payment settlement,\u201d Bank of Korea\u2019s Koh Kyung-chul reportedly said<\/a> at a conference on May 12.<\/p>\n \u201cThe negative impact on the central bank\u2019s policy implementation should be minimized by the central bank\u2019s practical intervention in the approval stage,\u201d he added.<\/p>\nExchanges like Upbit and Bithumb involved<\/h2>\n
Criticism of \u201cone-exchange, one bank\u201d rule<\/h2>\n