Catenaa, Tuesday, September 30, 2025- South Korea’s Democratic Party has established a Digital Asset Task Force to advance comprehensive cryptocurrency and stablecoin legislation, amid growing concerns over capital flight and regulatory gaps.
The task force, led by Representative Lee Jung-moon, aims to pass digital asset laws during the 2025 regular and year-end National Assembly sessions.
Officials cited the transfer of $40.6 billion in digital assets abroad in Q1 2025, half of which involved stablecoins such as USDT and USDC, as a primary concern for monetary sovereignty.
Party leaders stressed the need for won-backed stablecoin policies to counter dollar-based alternatives and align South Korea with global crypto developments.
Han Jung-ae, chair of the Democratic Party’s policy committee, emphasized that legislation will cover stablecoin issuance, distribution, and broader virtual asset operations.
Consumer protection measures, including custody rules, disclosure requirements, and insurance mechanisms, are expected to be key components.
The task force will coordinate with the Financial Services Commission, Financial Supervisory Service, and Bank of Korea while engaging directly with exchanges and fintech firms via public hearings.
South Korea’s stablecoin market is gaining traction. BDACS and Woori Bank launched KRW1, the nation’s first regulated won-backed stablecoin, while Kakao pursues its own won-pegged token through Kaia blockchain.
Competing proposals from the People Power Party indicate legislative negotiations could be challenging.
