South Korea’s Financial Supervisory Service began an investigation on Friday, June 3rd into payment gateways that use digital assets. FSS, South Korea’s financial regulator, operates under the Financial Services Commission. Both of these are government institutions.
Local news outlet Money Today Co. reported that the FSS recently requested reports from 157 payment portals regarding any service related crypto, their future plans, and disclosures of digital assets. An FSS report revealed that only six of them had any digital assets.
Related: How Terra’s fall will affect future stablecoin regulations
While the FSS is the current primary financial regulator in South Korea, the Digital Assets Committee was launched by South Korea on May 31st 2022. This announcement states that this temporary solution is being offered to help the virtual asset market recover from the Luna-Terra crash.
The guidelines cover screening criteria for newly-listed assets as well as market monitoring, trade monitoring, disclosure and other investor protections. The standards have been agreed upon by the five largest exchanges of the country and they have created their own committee to prevent another Terra-like incident (LUNA).
Shortly after the FSS started its investigation, it announced that it would be holding a remote meeting of financial supervisory authorities representing five countries in Asia-Pacific. The Indonesian Financial Supervisory Service hosted the event, which also included Australia, China and Japan.
Global market conditions were discussed as well as big-tech and crypto. The Korean representative spoke out about the need to regulate cryptocurrency, take disciplinary action against virtual assets, and expand financial regulatory frameworks.
The incoming crypto committee in South Korea will steer policy recommendations and enforce investor protections ahead of the enactment of a Digital Asset Basic Act (DABA) https://t.co/zhAmTH5JU2 pic.twitter.com/pBE9qSbLbP
— Decrypt (@decryptmedia) June 1, 2022
South Korean officials launched an investigation into Do Kwon, who was the main figure in the Luna incident, on Tuesday 24 May 2022. Yoon Chang-Hyeon will be the head of the Digital Assets Committee. He was the chairman and special committee member of People’s Strength Virtual Assets Special Committee, who met with top exchanges to respond.