In wake of Terra collapse, South Korea plans new crypto oversight committee: Report

In wake of Terra collapse, South Korea plans new crypto oversight committee: Report

The Terra ecosystem’s fall and rise has had significant consequences around the globe, but it’s clear that South Korea, the country where its creator was born, was the most concerned.

According to NewsPim, amid signs that Do Kwon, co-founder of Terraform Labs, was in legal trouble in South Korea’s courts, the ruling party in South Korea announced Tuesday that it would launch a new Digital Asset Committee early in June.

The report states that the committee will act as a watchdog for the crypto industry, and will be responsible for policy formulation and supervision, up to the enactment of the Framework Act for Digital Assets and the establishment of a formal government entity dedicated to crypto.

This committee is an expansion of and reorganization to an existing body that oversees virtual assets. It is expected to improve policy effectiveness by streamlining government oversight efforts in crypto.

Another remarkable twist comes with the Terra (LUNA), crash. Two South Korean offices were liquidated and Terraform Labs Korea was dissolved in legal documents. This happened just days before the collapse of the dual currency. https://t.co/hjEb1rXV4q
— Cointelegraph (@Cointelegraph) May 21, 2022

Related: Do Kwon called to parliamentary hearing after UST/LUNA crash

A translated version of the original report was published in Korean. Hwang Seok Jin, a professor at Dongguk University, and a member the Special Committee on Virtual Assets suggested that “a ministry be established to protect digital assets investors at the same level as stock investor protection.”

Professor also suggested that cryptocurrency trading volumes in the country be compared to those of the KOSDAQ stock market, implying that they should be treated similarly as traditional equities.

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