The government of South Korea is prioritizing the regulation of the crypto sector now that the international sentiment towards the sector is warming up. In a fresh development, the Democratic Party of Korea has reportedly established a virtual assets task force to expediate the process of drafting national crypto rules.
The task force has been given the responsibility to propose policies that can help companies related to the stablecoin and other digital assets grow in the country. The existing laws around digital assets in South Korea focus more on operator regulation and the protection of users. The government, however, wishes to give a new dimension to these policies.
Senior members from the Democratic Party attended the launch ceremony of this task force on September 24, including the party’s Policy Committee Chairwoman Han Jeong-ae, local publications reported.
“Virtual asset investors are frequently suffering losses due to illegal activities such as unfair price manipulation and the use of undisclosed information. By excluding virtual asset brokerage from the restricted venture business category, we hope to revitalize venture companies with technological capabilities,” local media reports quoted Han as saying.
Democratic Party lawmaker Lee Jeong-moon has been appointed as the head of this task force. Pro-crypto members of the ruling party have also been onboarded to the body to contribute in the policy making.
In the coming weeks, the task force will work with various ministries — including the Financial Services Commission, the Financial Supervisory Service, and the Bank of Korea. It will also be creating an advisory group comprised of members from crypto firms and fintech companies from the private sector.
The country is aiming at getting more clarity on its crypto regulations by the end of 2025.
The development comes just days after South Korean authorities said that suspicious crypto transactions originating within its borders have clocked a two year rise this year. Between January and August 2025, South Korea’s local virtual assets service providers (VASPs) flagged 36,684 suspicious transaction reports (STRs), the Korea Customs Service (KCS) has told the media.
The country is also reportedly looking to let crypto companies qualify as venture firms.