In a pivotal development for South Korea’s cryptocurrency and blockchain sectors, the conservative People Power Party (PPP) is proposing a sweeping legislative framework aimed at nurturing the country’s digital economy.
According to Newsis report, the initiative includes deregulating certain aspects of digital assets, promoting blockchain innovation, and integrating crypto assets into the financial regulatory system.
The strategic push marks a departure from South Korea’s traditionally cautious approach toward digital finance, signaling a more supportive stance on Web3 technologies.
If passed, the proposed bill could dramatically reshape the local digital landscape, offering both regulatory clarity and growth opportunities for blockchain-based startups and investors.
A Vision for Structured Growth and Investor Protection
At a recent National Assembly strategy meeting, People Power Party Policy Committee Chairman Kim Sang-hoon emphasized the party’s commitment to fostering a well-organized digital asset market.
“The People Power Party will promote the enactment of the Basic Act on Fostering Digital Assets to foster the digital asset market and manage it systematically,” he announced.
Chairman Kim explained that the forthcoming legislation will strike a balance between investor protection and industrial innovation, providing a solid legal foundation for South Korea’s rapidly evolving digital asset ecosystem.
The marks a significant step toward legitimizing the crypto sector through responsible governance.
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Ending Regulatory Uncertainty to Attract Global Capital
Chairman Kim criticized the government’s current restrictive policies, which he claims are driving both domestic and foreign capital away from South Korea’s digital asset markets.
He pointed out that regulatory ambiguity, primarily justified under anti-money laundering concerns, has made the Korean crypto market less attractive to investors.
“We need to end the era of ambiguity and regulation and open an era of fostering digital assets,” Kim declared, referencing a recent Democratic Party-Government Council meeting aimed at supporting virtual assets.
He warned that without reform, South Korea risks falling behind as capital flows to more crypto-friendly environments like the United States.
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The Future of Crypto as a National Policy Agenda
Looking ahead, the PPP appears ready to incorporate digital asset development into its broader political platform.
Chairman Kim highlighted that digital assets could become the “gold of the 21st century,” offering value beyond mere speculation.
“They are new assets of the new economy created by combining computer power and blockchain technology,” he noted.
Acknowledging past indecision, Kim urged the nation to embrace the potential of digital finance.
As part of this forward-looking strategy, Rep. Park Soo-min, a key party member responsible for crypto policy, is expected to unveil a more detailed coin policy as early as Monday, laying the groundwork for what could be a transformative period in South Korea’s financial history.
Broader Momentum: Banks, Candidates, and Regulators Push for Reform
Beyond the ruling party, momentum is building across various sectors. Presidential hopeful Hong Joon-pyo has pledged crypto deregulation modeled on U.S. policies, proposing a ₩50 trillion investment in technology and reform.
Meanwhile, South Korea’s top banks are urging lawmakers to revise rigid crypto exchange policies to allow multi-bank partnerships, encouraging more flexible market operations.
Additionally, the Financial Services Commission (FSC) is considering opening the door for foreign investors, provided that local exchanges meet anti-money laundering standards.
These moves together signal a nationwide pivot toward a more crypto-friendly regulatory climate.
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