South Korea To Establish Crypto Committee Following Terra Crash

June 1, 2022 Off By Roland G

South Korea will establish a “Digital Asset Committee”

Commuters wearing masks to avoid contracting the coronavirus disease (COVID-19) walk on a zebra crossing in Seoul, South Korea, September 24, 2021. REUTERS/Kim Hong-Ji

According to a local news report, South Korea will establish a “Digital Asset Committee” by the end of June to rein in the cryptocurrency business following the Terra crash.

Until the planned Digital Asset Basic Act is approved and the government develops a separate body to oversee the crypto business, the committee will act as a watchdog.

The government is forming the new Digital Asset Committee by expanding and reforming the existing Special Committee on Virtual Assets.

The committee will be formed after the new chairman of the Financial Services Commission enters the office.

Among other things, the new committee would establish currency listing standards, regulate unfair trading practices, and oversee investor protection measures.

According to Hwang Seok-jin, a professor at Dongguk University and a member of the Special Committee on Virtual Assets, with South Korea’s daily crypto transaction volume averaging around 11.3 trillion won ($9 billion), similar to stock market trading volume, cryptocurrency investors should be protected in the same way that stock traders are.

Since the Terra saga, which affected roughly 280,000 South Koreans, the country’s regulators have been pushing to speed up crypto legislation.