As the world witnessed the major collapse of the now-failed UST/LUNA model, South Korea is planning to launch a “Digital Asset Committee.”
South Korea to launch a Digital Asset Committee
As per reports by local news outlets, the Digital Asset Committee will work as a watchdog for the crypto market until the government of South Korea forms a dedicated agency for the task and enacts the Digital Asset Basic Act.
With its recent move, the government is working on expanding its existing Special Committee on Virtual Assets. According to the reports, the Digital Asset Commission plans to prepare guidelines for coin-listing criteria, market monitoring like the designation of significant stocks and unfair trade monitoring, disclosure system, investor protection measures, etc. The committee aims to minimize the confusion in the market and increase policy effectiveness by unifying the departments currently in charge.
The Digital Asset Committee is expected to be launched following the Financial Services Commission, or FCA’s new chairman takes up office. Hwang Seok-jin, a member of the Special Committee on Virtual Assets and professor at Dongguk University, suggests that a ministry should be established for user protection and stated:
“As of the end of last year, the daily transaction amount of virtual assets was 11.3 trillion won, which is similar to the average daily transaction of the KOSDAQ, but there is no investor protection due to the lack of a system.”
Terra collapse catalyzed the urgent need for regulations
Terra collapse has led to regulatory heat in South Korea, which has assigned its special investigative and prosecutorial team, The Grim Reapers, to investigate Terraform Labs and its core team members.
The severe loss of around 280,000 crypto investors in South Korea due to Terra’s downfall made the matter urgent for the regulatory bodies in the nation.
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