South Korea's ruling Democratic Party has established a Digital Asset Task Force to push for comprehensive legislation on stablecoins and digital assets, with the goal of passing laws by the end of 2025. This initiative aims to protect the nation's financial sovereignty by countering the dominance of U.S. dollar-backed stablecoins like USDT and USDC.
The move comes in response to significant capital flight, as Korean crypto exchanges transferred $40.6 billion in digital assets abroad during the first quarter of 2025, with half of these transactions involving stablecoins. Han Jung-ae, chair of the party's policy committee, emphasized that "the need for legislation to cover issuance, distribution, and stablecoins of virtual assets is constantly being raised in the market."
Key focuses include establishing a won-based stablecoin policy and enhancing consumer protection through custody rules, disclosure requirements, and insurance mechanisms. The task force, led by Representative Lee Jung-moon, will collaborate with agencies like the Financial Services Commission and the Bank of Korea, while engaging with crypto exchanges via public hearings. Despite competition from the opposition People Power Party's July legislation, bipartisan consensus is expected by year-end.