The Democratic Party of Korea has established a "Digital Asset Committee".

Source: Cointelegraph Original text: "The Democratic Party of Korea Establishes a 'Digital Assets Committee'"

The largest political party in South Korea, the Democratic Party, has launched a Digital Assets Committee focused on formulating cryptocurrency policies and promoting industry growth.

According to local news agency News1, the committee held its first meeting on May 13 at the National Assembly building in Seoul.

At the first meeting, the committee emphasized the importance of addressing regulatory uncertainty and discussed urgent issues such as stablecoin regulation in the context of the U.S. government's push for a stable dollar.

This new committee joins the ranks of similar organizations in South Korea, including the Virtual Assets Committee set to launch by the end of 2024 and another public-private crypto task force initiated by the Financial Services Commission (FSC) in 2022.

The leadership of the Digital Asset Committee includes South Korean officials and political figures, such as National Assembly Speaker Min Byeong-deok, who serves as the committee chairman.

In addition, the organization also includes the Chairman of the Permanent General Election Commission Yoon Yeo-joon, the Chairman of the Muksanism Committee Maeng Seong-gyu, Member of Parliament Kim Byeong-gi, and former National Assembly Chairman Kim Jeong-woo.

According to ChosunBiz, the committee will also include executives from major local exchanges such as Upbit, Bithumb, Coinbit, and Gopax.

At the opening meeting, the committee chairman Min expressed concerns about the limitations of South Korea's current "one exchange, one bank" rule, suggesting that cryptocurrency exchanges are restricted to collaborating with only one lending institution.

According to reports, Min stated: "The principle of one exchange, one bank has obvious flaws." He added that the committee is working with regulators to resolve this issue.

The chairman also mentioned the discussions regarding which regulatory agency should be responsible for overseeing the stablecoin industry, as well as whether stablecoins should be subject to a licensing system or a reporting system.

According to reports, he stated: "There is also controversy over whether the Bank of Korea or the FSC should be responsible for regulation."

Not long before this news was released, a senior executive at the Bank of Korea expressed concerns about issuing a won-backed stablecoin.

According to reports, Koh Kyung-chul of the Bank of Korea stated at a meeting on May 12: "Stablecoins have a significant impact on the implementation of central bank policies such as monetary policy, financial stability, and payment settlement."

He added, "The actual intervention of the central bank during the approval stage should be used to minimize the negative impact on the implementation of central bank policies."

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