After the default of the Terra project, the South Korean authorities decided to form a Digital Assets Committee by the end of June, which is responsible for protecting cryptocurrency investors.
Committee will be oversee the crypto industry until the pending Digital Assets Act is passed and the government creates a separate agency for this task. The committee will be created by expanding and reorganizing the existing Virtual Assets Task Force, following the inauguration of a new Chairman of the Financial Services Commission.
The supervisory authority will set criteria for listing cryptocurrencies, monitor unfair trading practices, monitor investor protection measures, and perform other tasks.
Dongguk University professor and member of the Virtual Assets Select Committee Hwang Seok-jin noted that the daily volume of cryptocurrency transactions in South Korea averages about 11.3 trillion won (about $9 billion), which is similar to the volume of trading in the stock market. Therefore, cryptocurrency investors, like stock traders, should receive protection from crypto companies that engage in illegal activities.
According to Hwang Seok Jin, the creation of an interim supervisory body will ensure the safety of local crypto investors. Note that the collapse of UST and LUNA affected almost 280,000 South Korean citizens.
In May, local officials and representatives of the crypto business during the meeting agreed to develop rules that protect investors and involve law enforcement agencies in overseeing the activities of cryptocurrency exchanges. A little earlier, the Financial Services Commission of South Korea, against the backdrop of a tense situation in the stablecoin market, proposed registering crypto companies depending on their level of risk for investors.
Immediately after the collapse of Terra, the South Korean Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) began conducting a massive audit of local cryptocurrency trading platforms.
Source: Bits
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