Ruling party steps back from establishing cryptocurrency special committee

The ruling Democratic Party of Korea has decided to take a step back from its original plan to set up a separate body within the party to respond to cryptocurrency-related issues, and to deal with the issue at its policy committee. The decision came amid concerns that poor policies or remarks coming from the special committee could further disturb the cryptocurrency market.

Party spokesperson Han Jun-ho told reporters on Tuesday that the party’s policy committee will seek action on cryptocurrency-related issues instead of creating a separate body dedicated to cryptocurrency. Committee leader Hong Ik-pyo told The Dong-A Ilbo via phone call that a hasty intervention could mess up the market.

There is a strong body of opinion within the ruling party, which is sensitive to the sentiment of those in 20s and 30s, that it should recognize cryptocurrency transactions as legal investment activities. “With cryptocurrency being used as a new investment vehicle, we need to provide policy support for cryptocurrency investors,” Hong said during Tuesday’s meeting. “Investors should be protected against issues, including illegal pyramid schemes, money laundering, and private loan,” Hong stressed. There are also voices within the party that discussions on cryptocurrency should be held at the National Assembly level.

The main opposition People Power Party is planning to launch a task force on cryptocurrency immediately after it elects a new floor leader on Friday. “Steps are underway to select the most suitable members for the TF,” said Lee Jong-bae, head of the party’s policy committee. “TF members will include experts outside the party as well as standing members from the Strategy and Finance Committee and the National Policy Committee.”


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