Digital Assets: South Korea Steps Up Creation Of Crypto Regulator After the Luna Debacle

May 31, 2022 | Digital Assets, News

The new regulatory body could launch as early as next month.

South Korea is putting pedal to the metal for setting up a regulatory body titled the Digital Assets Committee to watch over the crypto sector following the “terra (LUNA) incident,” in which investors lost billions of dollars due to the collapse of the terra stablecoin. (Cryptonews)

According to Newspim, the crypto regulatory watchdog would be named Digital Assets Committee (a translation of the South Korean name), and could see the light of day by next month. It would likely have the distinction of being the first such body anywhere in the world. The decision to launch this agency was expedited in view of the Luna incident.

The Newspim article also said the body “is expected to become a control center for policy creation and the supervision of the cryptoasset industry,” quoting sources from the People’s Power Party – the party of President Yoon Suk-yeol.

One of the remits of the Digital Assets Committee would be to install the “Digital Assets Framework Act” a law that is currently at the draft stage, but is likely to set forth a large number of rules for crypto, as well as certain crypto-business-friendly measures.

Some of the rules may focus on monitoring of tokens, listing/delisting, investor protections, insider trading, and unfair trading practices.

The Digital Assets Committee will function independently of the existing Financial Services Committee (FSC) and the Financial Supervisory Service (FSS), South Korea’s top financial regulators.

Related Story: The Terra (LUNA) Implosion – Sidelights

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