Korean Govt to Set up Digital Asset Committee as Country Probes Terra Collapse

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Local reports have confirmed that the South Korean government will launch a Digital Asset Committee this month in the wake of the Terra collapse.

With the aim of better investor protection and stricter market surveillance, the committee will integrate the work of the various ministries in the vertical areas of planning and finance, the finance commission, science and technology, information communications and the protection of personal information.

 An official of the ruling party also told the papers, “the launch of the digital assets committee will be immediately after the inauguration of the new finance chairman,” and “we expect it to be the last week of June.”

South Korea to get its first crypto supervisor

The translated report said, “There have been many discussions about a dedicated government organization that will serve as a watchtower, but this is the first time the launch of the digital assets committee has been officially confirmed.”

Meanwhile, the domestic authorities are probing Terraform Labs and Luna CEO Do Kwon soon after the ‘algo[rithmic] stablecoin’ meltdown. The investigators also reportedly summoned former employees and developers of the Luna ecosystem recently. Latest reports also underline that investors have filed additional charges against the co-founders with 76 victims seeking redressal.

That said, the next commission is expected to implement policies within the virtual asset industry until a legal framework is in place. Some of the committee’s tasks would include setting guidelines for listings, monitoring unfair trading practices, overhauling disclosure systems and investor protection measures.

Will Luna 2.0 be a repeat episode?

The volatility of the Terra Luna 2.0 is keeping the market concerned as the authorities simultaneously probe the collapse and outline tightened regulatory standards. Fadi Aboualfa, head of research at crypto brokerage Copper had told Bloomberg, “This is pure gambling like crypto has never seen,”

Notably, several exchanges moved forward to list the token, before beginning an airdrop within the community. Jesse Powell, CEO of Kraken, said Luna 2.0 was listed due to “customer demand” and “the listing is not an endorsement”.

Huobi also supported the listing and told the media outlet, “For users who hold Luna 1.0 on the platform, the airdrop of Luna 2.0 can ideally assist in making up for the losses during previous incidents.” 

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