South Korea’s Key Right-Wing Party Pushes for New Law Promoting Crypto Sector

The People Power Party (PPP), a major right-wing political party in South Korea, officially announced plans on Friday to introduce a new bill aimed at revitalizing the country's cryptocurrency industry.

Ending the “Era of Uncertainty” in South Korea’s Crypto Market

According to local outlet Newsis, Kim Sang-hoon, policy chief of the PPP, emphasized during a recent meeting that it's time for the country to move past excessive regulatory barriers and step into a new phase of digital asset innovation.

“Due to the government's anti-money laundering efforts, an excessively regulation-focused policy is preventing foreign capital from entering the domestic virtual asset market,” Kim stated, also noting that local capital is flowing out for similar reasons.

Kim characterized cryptocurrency as the “21st-century gold”, arguing that it has the potential to become a critical store of value in the new economy. He acknowledged the past hesitation of policymakers and called for a shift toward institutionalizing and nurturing the crypto sector.

“We hesitated, we were confused and unable to present a clear direction when faced with this new frontier,” he said. “We must now transition to efforts to actively foster and institutionalize digital assets.”

New Bill to Be Unveiled: Digital Asset Promotion Basic Act

The proposed legislation, titled the “Digital Asset Promotion Basic Act,” is expected to be officially introduced next Monday, according to the report.

This bill forms part of South Korea's efforts to modernize its crypto policies and will incorporate a framework that promotes innovation and foreign investment while retaining local financial resources.

FSC Also Easing Crypto Restrictions

The Financial Services Commission of South Korea operates to ease existing regulations around digital assets. In January, the regulator announced plans to lift the ban on institutional investments in cryptocurrencies.

Earlier this month, an FSC official said the commission might open up local crypto trading to foreign investors, a practice that’s currently prohibited.

In tandem, the FSC is crafting legislation to follow the country’s first crypto regulatory framework, with new rules expected to address stablecoin governance, token listings, and disclosure standards for crypto projects.

As South Korea moves toward regulatory reform and policy support for virtual assets, the PPP’s proposal marks a major step in aligning the country's crypto infrastructure with global market trends.

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