South Korea’s ruling Democratic Party has taken a significant step toward cryptocurrency advancement by launching a dedicated policy task force focused on fostering growth in the digital asset and blockchain sectors. Announced at a National Assembly press event on September 24th, the initiative represents a marked departure from the country’s previously restrictive approach to cryptocurrency regulation. Task force chair Han Jeong-ae emphasized the need to establish systems that keep pace with evolving financial market trends, signaling the government’s commitment to “stable and sustainable institutional innovation” in the digital asset space.
The task force, led by lawmaker Lee Jeong-moon and including prominent crypto advocate Min Byoung-dug, has set an ambitious timeline to pass pro-business legislation before the year’s end. Their initial focus centers on stablecoin legislation, though the broader mandate encompasses comprehensive digital asset policy reform. Unlike existing regulations that primarily emphasize operator oversight and consumer protection, the new approach prioritizes industry streamlining and growth facilitation, potentially transforming South Korea’s position in the global cryptocurrency landscape.
The initiative involves extensive stakeholder consultation, with the task force actively seeking policy proposals from key financial regulators including the Financial Services Commission, Financial Supervisory Service, and the Bank of Korea. Private sector engagement forms a crucial component of their strategy, with planned discussions involving cryptocurrency exchanges, fintech companies, and the formation of an expert advisory group. This collaborative approach aims to ensure that resulting legislation addresses real industry needs while maintaining appropriate regulatory safeguards.
The timing of this task force launch coincides with other positive developments for South Korea’s crypto sector, including the recent lifting of venture capital funding restrictions for cryptocurrency firms. Lawmakers have expressed urgency about maintaining competitive positioning, with DP member Ahn Do-geol warning that delays could result in missing out on significant innovation and growth opportunities in the digital asset sector. The bipartisan consensus emerging around stablecoin policy suggests that meaningful legislative progress may be achievable within the proposed timeline, potentially positioning South Korea as a more crypto-friendly jurisdiction in the region.
