South Korea is making significant strides in fast-tracking pro-business crypto reforms, with stablecoin regulations at the forefront of the government’s agenda. The Presidential Committee on State Affairs recently announced plans for a five-year state administration plan, which includes 123 state affairs-related tasks.
The construction of a digital asset ecosystem and the development of the domestic cryptoasset market have been identified as key national tasks by the administration. President Lee Jae-myung, who took office in early June, has been vocal about his intention to bolster the domestic crypto sector through deregulation and stablecoin regulation.
One of the key initiatives is to allow domestic firms to issue won-pegged stablecoins, prompting leading banks and IT companies to register numerous stablecoin-related trademarks. This move is expected to pave the way for non-financial firms to develop advanced payment platforms.
While President Lee had campaigned on dissolving the Financial Services Commission (FSC), the nation’s top financial regulator, this proposal was notably absent from the five-year plan. The FSC plays a crucial role in overseeing the country’s crypto exchanges and enforcing anti-money laundering protocols.
In recent years, the FSC has shifted its stance on the crypto sector, advocating for reform in line with global trends. However, the President’s plan to scrap the FSC sparked controversy, with senior ministers expressing reservations about the proposal.
Despite the uncertainty surrounding the FSC’s future, crypto reforms remain a key focus for the government and the National Assembly. Political leaders are eager to address the country’s lagging competitiveness in the global crypto market, which has seen significant growth in other regions.
The FSC has outlined plans to relax regulations and allow corporations to engage in crypto transactions. While discussions on the fate of the FSC continue, the regulator is aiming to introduce new crypto-related regulations by the end of the year.
South Korea’s push for crypto reform comes amid efforts to tackle tax evasion in the crypto space. The Seoul district of Gangnam recently announced successful tax collection through seizing coins from tax evaders.
Overall, South Korea’s proactive approach to crypto reform signals a commitment to fostering innovation and growth in the digital asset ecosystem. With a focus on regulatory clarity and market competitiveness, the country is poised to play catch-up in the rapidly evolving world of cryptocurrencies.