Following the collapse of Terra, the South Korean government is planning to form a new committee specifically to oversee the digital asset market, according to a report by NewsPim news agency.
- The Digital Assets Committee, which could be launched this month, is expected to establish criteria for listing coins, introduce measures to protect investors and monitor unfair trading.
- Following the collapse of Terra last month, there have been calls in South Korea for the establishment of a body to specifically oversee the digital asset industry and provide protections comparable to those for stock market investors.
- Currently, oversight is provided by a number of government departments and regulatory agencies, such as the Ministry of Strategy and Finance, the Financial Services Commission, and the Ministry of Science and ICT.
- At an emergency National Assembly seminar last week, there were calls for stronger oversight of the crypto industry. "We need to ensure that exchanges play their role properly, and to that end, it is important for regulators to oversee them thoroughly," said Rep. Sung Il-jong of the ruling People Power Party.
- Some 280,000 South Koreans are believed to have fallen victim to the decline in value of the Terra stablecoin UST and its sister token LUNA.