South Korea's Ruling Parties Unveil Cryptocurrency Policy Pledges Ahead of Local Elections

South Korea's cryptocurrency landscape is taking center stage ahead of the June 3 local elections. Both the ruling Democratic Party and opposition People Power Party have released policy books outlining their visions for the industry, with a focus on enacting a Digital Asset Basic Act.

The parties' platforms reveal a shared commitment to establishing a regulatory framework for stablecoins, clarifying entry and operating rules for virtual-asset service providers, and creating legal standards covering stablecoin issuance, reserve-asset management, and user protection. However, their approaches diverge on key issues such as tax policies and the institutionalization of crypto-related products.

The Democratic Party's platform emphasizes expanding the crypto market, fostering industry growth, and encouraging innovative digital-asset services. In contrast, the People Power Party focuses on abolishing taxes on virtual-asset income, improving market structure, and strengthening transparency.

Industry participants are urging lawmakers to expedite second-stage legislation, which would cover won-denominated stablecoin issuance and distribution as well as the introduction of spot crypto ETFs. The passage of a Digital Asset Basic Act is seen as critical for establishing market order in South Korea's crypto industry.