Virtual Asset Committee on 'Complete Halt'... Political Circles Weigh In

Korea Economic Daily

Summary

It was reported that the Virtual Asset Committee of the financial authorities has been in a state of complete halt since the launch of the new administration.
It was noted that in the political sphere, numerous virtual asset TFs have been springing up one after another, causing policy confusion.
An industry official mentioned that the fragmentation of policy-making entities is causing confusion in the market and highlighted the necessity of unifying the policy body and accelerating discussions.

Policy proposals from various TFs create confusion

It has been confirmed that the Virtual Asset Committee, an advisory body on virtual asset policy for financial authorities, has come to a complete halt since the launch of the new administration. In the political sphere, various virtual asset-related task forces (TFs) have been popping up like mushrooms, leading to growing concerns about policy confusion.

According to financial authorities on the 7th, the Committee has not convened for two months since its last meeting in early May. This is because the position of Vice Chairman of the Financial Services Commission—who serves as the ex officio chair of the Committee—is currently vacant, and the center of discussion has shifted to political circles following the advent of the new administration.

In the National Assembly, lawmakers across the spectrum are taking the lead in forming virtual asset policy. Members of the Democratic Party of Korea on the National Assembly Political Affairs Committee plan to soon propose the "Act on Innovation and Growth of the Digital Asset Market," which functions as a virtual asset industry law. Do-Gul Ahn, a lawmaker from the Democratic Party, has formed a "Stablecoin TF" led by the Ministry of Economy and Finance, FSC, and Bank of Korea. The State Affairs Planning Advisory Committee, which prepares national policy agendas for the new government, is also establishing a virtual asset TF to discuss regulatory frameworks for stablecoins, among other issues.

Some point out that the fragmentation of policy-making entities for virtual assets is only fueling further confusion. According to one industry official, "Each TF emphasizes different points and policy directions, which is causing market confusion," adding that "there is a need to unify the policy-making body and proceed with discussions at a brisker pace."