Democratic Party: "Stablecoins to be Regulated Like Other Virtual Assets"

The Democratic Party of Korea has expressed a negative stance on regulating stablecoins separately from other virtual assets.

Min Byung-deok, chairman of the Digital Asset Committee under the Democratic Party's election campaign committee, stated on the 16th, "At the conference on the 13th, the need for a separate classification to secure the value stability and redeemability of stablecoins, which differentiate them from general virtual assets, was raised," adding, "It is necessary to be cautious about legislating stablecoins separately from general digital assets." The Digital Asset Committee added, "Considering that the distribution of stablecoins and general digital assets is carried out in the same way, and the potential increase in regulatory costs and regulatory arbitrage that could arise from system bifurcation, which could ultimately result in inefficiencies burdening the public."

The Digital Asset Committee emphasized that the enactment of the 'Digital Asset Basic Act' being pursued by the Democratic Party should precede. The committee stated, "To institutionally guarantee the value stability and redeemability of stablecoins, it is essential to quickly pass the basic law to provide legal stability to the market," adding, "The Democratic Party is prioritizing this as the top task and is doing its utmost to complete the legislative process as soon as possible." They further stated, "After the enactment of the Digital Asset Basic Act, subsequent legislation such as the Foreign Exchange Transactions Act will be revised and organized step by step to meet the level of the global digital asset G2."