One of South Korea’s major political parties is preparing new legislation aimed at supporting and developing the domestic cryptocurrency industry.
The People Power Party (PPP), a prominent conservative party and the former ruling political bloc, announced on Friday its intent to introduce a comprehensive bill that would provide a structured and forward-facing framework for digital assets.
This move marks a shift from the cautious and regulation-heavy stance that has long defined South Korea’s approach to the crypto sector.
Digital Asset Promotion Basic Act to Be Unveiled
The announcement comes at a time when both foreign and domestic investors have voiced concerns about the regulatory climate in the country.
At a recent policy meeting, Kim Sang-hoon, head of policy for the People Power Party, emphasized that South Korea must move beyond uncertainty and embrace a more supportive stance on digital asset innovation.
Kim argued that current policies, primarily focused on anti-money laundering enforcement, have created barriers that deter international investment and drive local capital overseas.
According to a report from South Korean news outlet Newsis, the new legislative proposal will be titled the Digital Asset Promotion Basic Act, with full details expected to be released next Monday.
While specifics of the bill have not yet been disclosed, the framework is expected to include provisions for promoting digital innovation, reducing regulatory friction, and establishing clearer institutional guidelines for crypto firms and investors.
In his remarks, Kim Sang-hoon characterized digital assets as a fundamental component of the emerging economy, stating that crypto has the potential to serve as a “21st-century gold.” He acknowledged that previous government responses to the crypto industry were fragmented and lacked a cohesive direction.
Going forward, he urged that South Korea must not only recognize digital assets as a permanent part of the financial landscape but also develop mechanisms to incorporate them into national economic policy.
Regulatory Landscape May Be Shifting
The People Power Party’s proposal aligns with recent signals from South Korea’s financial authorities, which are also taking steps to reassess existing crypto regulations.
Recently the Financial Services Commission (FSC) announced that it would begin easing restrictions that currently prevent institutional investors from entering the crypto market. The move is being interpreted as part of a broader recalibration of regulatory priorities that balance risk mitigation with market growth.
South Korea has long maintained strict oversight of its virtual asset markets, particularly in response to concerns around money laundering, speculative bubbles, and investor protection.
However, this stance has at times been criticized for stifling innovation and limiting access to digital asset investment opportunities. As global jurisdictions race to define and regulate the crypto economy, South Korea’s policy shifts could help reestablish its competitiveness in the digital finance space.
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