South Korea to establish virtual assets watchdog in light of Terra collapse
South Korea has set out to form a Digital Asset Committee to oversee the virtual assets industry after the Terra collapse
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The collapse of the stablecoin–TerraUSD (UST) and its sister token–LUNA earlier in May caught the attention of the South Korean government on the urgency to set up a committee to decide on crypto regulation.
Until the country’s top policymakers draft a clear framework for digital assets, a Digital Asset Committee will act as a ‘control tower’ for the sector. This committee is set to launch in the last week of June.
It’s believed that this committee will bring together ministries to create a joint supervisory body after the swearing-in of the new Financial Services Commission Chair.
The ‘watchdog’ will supervise the industry and work closely with the top five crypto exchanges of South Korea (Upbit, Bithumb, Coinone, Cobit, and Gopax) to prevent another Terra-like collapse. It will also implement guidelines on listings, unfair trading, disclosure systems, and investor protection issues of digital assets.
Before the crash, Terra’s UST surpassed Binance’s BUSD as the third most popular stablecoin and grew by 865.81 percent in less than a year. The trouble for UST increased earlier last month when it lagged behind the United States dollar.
