Terra Luna South Korea: New Crypto Oversight Committee to Launch Amid Global Scrutiny
South Korea is taking decisive action in the wake of the Terra Luna collapse, announcing the launch of a new crypto oversight committee. This move comes amid increasing concerns about crypto-related crime and market stability, and follows agreements between Representatives of the US and the Republic of Korea (South Korea) have agreed to collaborate and share investigation data regarding ongoing crypto-related crime.
The formation of this committee signals a significant shift in South Korea's approach to digital assets. Amid signs that Terraform Labs co-founder Do Kwon was facing legal trouble in South Korea, the country’s ruling party announced Tuesday that it would launch a new body dedicated to regulating the burgeoning cryptocurrency market. This underscores the growing pressure on regulators to protect investors and prevent future crises.
What will the new crypto oversight committee do? The committee, according to the article, will act as a watchdog over the crypto business and be in charge of policy development and oversight at least until the next Framework Act for Digital assets is established. This implies a comprehensive approach to regulation, covering various aspects of the crypto industry.
The political context is also crucial. As South Korea’s presidential race heats up, the Democratic Party’s new Digital Asset Committee indicates a political shift, placing crypto regulation and industry reform high on the agenda. This shows a growing recognition of the importance of crypto in the South Korean economy and the need for clear regulatory guidelines.
Key responsibilities of The Digital Assets Committee will make policy recommendations, including criteria for new cryptocurrencies to be listed on exchanges, a schedule for ICOs (initial coin offerings), and measures to prevent market manipulation. These measures are designed to promote transparency, protect investors, and foster a more stable crypto ecosystem in South Korea. Stay tuned for updates as this committee begins its work and shapes the future of crypto in South Korea.