South Korea Prioritizes Cryptocurrency Regulation Amidst Upcoming Election – Coincu

South Korea’s Democratic Party is taking steps to centralize cryptocurrency regulation through a new Digital Asset Committee, targeting policy reforms ahead of the presidential election.

The regulatory reform aims to modernize South Korea’s digital asset framework in response to the increasing number of active crypto traders. The initiative seeks to affect major exchanges and address industry growth barriers.

South Korea’s Digital Asset Committee Targets Policy Overhaul

The South Korean Democratic Party has established a Digital Asset Committee, centralizing cryptocurrency policy-making ahead of the June 3 presidential election in Seoul. The regulatory reform could affect major exchanges.

The proposal addresses the ‘one exchange, one bank’ system, which is seen as a barrier to industry growth. Stablecoin regulation has also emerged as a significant agenda item, reflecting concerns about monetary policy stability.

President hopeful Lee Jae-myung endorses a swift stablecoin rollout, while the Bank of Korea insists on comprehensive discussions from inception to maintain market stability.

Stablecoins and Banking Reforms to Influence Crypto Markets

Did you know? South Korea’s scrutiny on stablecoins is partly influenced by the Terra-Luna incident of 2022, which underscored the risks of unregulated digital assets and prompted policy reforms.

According to CoinMarketCap, Bitcoin (BTC) is priced at $103,297.78, with a market cap of approximately $2.05 trillion. Trading volume over the past 24 hours is $51.55 billion, indicating a slight decrease. Bitcoin’s value has increased by 6.52% over the last week.

Expert insights from the Coincu research team suggest that policy developments could lead to increased trading volumes. Reforms may facilitate banking access, enhancing market liquidity and user protection, positioning South Korea as a digital finance leader.