South Korea's Ruling People's Power Party Pushed For Bold Bill That Promotes The Crypto Industry

South Korea’s leading right wing political party-People Power Party-is pushing for a new bill that aims to end an era of uncertainty and regulation, urging lawmakers to embrace digital assets as a cornerstone of the new economy.

The details of the upcoming bill, named the "Digital Asset Promotion Basic Act," is reportedly set to be announced next Monday, with details set to outline a framework that promotes innovation, reduces regulatory friction, and establishes clearer institutional guidelines for crypto firms and investors

Kim Sang-hoon, the policy chief of the former ruling party expressed that the government's anti-money laundering policies has been a great stumbling block for the development of digital assets in the nation, as it has deterred foreign investment and prompting domestic capital to flow out of the country.

Kim described cryptocurrency as a transformative asset class with the potential to become the “21st-century gold,” underscoring its role as a store of value in the digital age.

He acknowledged that South Korea’s initial response to the crypto boom was marked by hesitation and confusion, but insisted the time has come to actively foster and institutionalize digital assets.

“We hesitated, we were confused and unable to present a clear direction when faced with this new frontier. We must now transition to efforts to actively foster and institutionalize digital assets.”

An FSC representative said earlier this month that it may consider opening the door to foreign investors to trade in the local market, which is currently restricted.

Additionally, the FSC is actively developing follow-up legislation to the country’s initial crypto regulatory framework, with a focus on stablecoin regulations, token listing standards, and enhanced disclosure requirements.

These reforms are designed to balance robust oversight with the need to foster growth and innovation in South Korea’s rapidly evolving digital asset landscape.

As the global race for crypto leadership heats up, South Korea’s strategic pivot could have far-reaching implications for both domestic and international investors, potentially setting a new standard for regulatory modernization in the digital economy.