Crypto Takes Center Stage in South Korea’s Election: New Regulations Incoming

Cryptocurrency is no longer just a financial topic in South Korea — it’s now a political one. With the presidential election set for June 3, the Democratic Party has launched a dedicated Digital Asset Committee to bring all crypto policymaking under the President’s control.

The committee held its first meeting on May 13 at the National Assembly in Seoul, attended by lawmakers, officials, and top executives from exchanges like Upbit, Bithumb, Coinbit, and Gopax. Committee Chairman Min Byeong-deok said the goal is real policymaking, not just discussion. Work has already begun on the highly anticipated “Stage 2 Bill” — a legal framework for digital assets in the country.

Min criticized the current “one exchange, one bank” system as restrictive and announced efforts to modernize it. The committee will also explore if stablecoins — especially those linked to the Korean won — should require full licensing or simple registration.

Democratic Party candidate Lee Jae-myung supports a government-backed won-pegged stablecoin, despite concerns lingering from the Terra-Luna crash. The regulatory responsibility for stablecoins remains unclear, with the Bank of Korea strongly insisting on its oversight role.

The central bank warned that excluding it from early-stage talks could risk national monetary policy. With over 16 million crypto users in South Korea, crypto regulation is now a major battleground for the future of the country’s digital economy.