3 weeks ago
The largest governmental enactment successful South Korea, the Democratic Party, has launched a Digital Asset Committee focused connected processing cryptocurrency policies and promoting manufacture growth.
The committee held its inaugural gathering astatine the National Assembly Members’ Hall successful Seoul connected May 13, the section quality bureau News1 reported.
During its archetypal meeting, the committee highlighted the value of resolving regulatory uncertainty and addressing burning issues similar stablecoin regularisation amid the push for US-dollar stablecoins by the US government.
The caller committee joins akin organizations successful South Korea, including the Virtual Asset Committee launched in precocious 2024 and different public-private crypto task force introduced in 2022, some initiated by the Financial Services Commission (FSC).
Exchanges similar Upbit and Bithumb involved
The enactment of the Digital Asset Committee includes South Korean officials and politicians specified arsenic National Assembly president Min Byeong-deok, who joins the committee arsenic chairman.
Additionally, the enactment features lasting wide predetermination committee president Yoon Yeo-joon, Muksanism Committee president Maeng Seong-gyu, National Assembly subordinate Kim Byeong-gi and erstwhile National Assembly president Kim Jeong-woo.
Digital Asset Committee president Min Byeong-deok, Yoon Yeo-jun, Maeng Seong-gyu and Kim Jeong-woo (from near to right). Source: News1According to a study by ChosunBiz, the committee volition besides see information of executives from large section exchanges, including Upbit, Bithumb, Coinbit and Gopax.
Criticism of “one-exchange, 1 bank” rule
At the opening meeting, committee president Min expressed concerns regarding limitations of South Korea’s current one-exchange-one-bank rule, implying that crypto exchanges are restricted to collaborating with lone 1 lender.
“There are wide shortcomings to the 1 exchange, 1 slope principle,” Min reportedly said, adding that the committee is moving with regulators to resoluteness the issue.
The president besides mentioned discussions connected which regulators should beryllium liable for supervising the stablecoin manufacture and whether stablecoins should beryllium taxable to a licensing strategy oregon a reporting system.
Related: South Korea statesmanlike front-runner pledges to o.k. Bitcoin ETFs
“There is besides a constituent of contention arsenic to whether the Bank of Korea oregon the FSC should grip the regulation,” helium reportedly said.
The quality came soon aft a Bank of Korea enforcement expressed concerns implicit the issuance of the South Korean won-backed stablecoins.
“Stablecoin has a large interaction connected the implementation of cardinal slope policies specified arsenic monetary policy, fiscal stability, and outgo settlement,” Bank of Korea’s Koh Kyung-chul reportedly said astatine a league connected May 12.
“The antagonistic interaction connected the cardinal bank’s argumentation implementation should beryllium minimized by the cardinal bank’s applicable involution successful the support stage,” helium added.
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