South Korea takes a step towards centralized cryptocurrency regulation with the formation of the Digital Asset Committee, reflecting a desire to modernize the industry.
Goals of the Digital Asset Committee
Officially launched on May 13, the Digital Asset Committee aims to unify the approach to cryptocurrency regulation in the country. Its first meeting included leading figures and executives from key exchanges, with Chairman Min Byeong-deok emphasizing the need for reform of the current 'one exchange, one bank' model, which restricts the development of cryptocurrency businesses.
Parallels with Singapore
South Korea's regulatory initiatives are similar to Singapore's comprehensive oversight model, which may help the country position itself as a leader in financial innovation within Asia.
Main Regulatory Directions
The committee is considering the possibility of creating a stablecoin pegged to the won. This proposal is supported by several major exchanges, such as Upbit and Bithumb. It is expected that these new measures will impact market liquidity and financial dynamics.
Streamlining cryptocurrency regulation could enhance financial transparency and spur technological innovations for South Korea, increasing its competitiveness on the global stage.
