S Korea Plans Crypto Oversight Committee After Terra’s Collapse

S Korea Plans Crypto Oversight Committee After Terra’s Collapse

According to sources South Korea is planning a new crypto oversight committee after the collapse of Terra.

The Terra ecosystem’s collapse has had huge consequences worldwide, but there’s no doubt that South Korea, the birthplace of its creator, was the most concerned country among all of them.

Do Kwon, the co-founder of Terraform Labs is facing legal troubles in South Korea. Amidst this the country’s ruling party announced that it would release a new Digital Asset Committee during early June, as per the local news outlet NewsPim.

As per the report, the committee will operate as a watchdog over the crypto businesses and it will also be responsible for preparation and supervision of policies. It will be responsible until the upcoming Framework Act for Digital Assets is put in motion and a formal government entity dedicated to crypto is made.

Meanwhile, reports of South Korean authorities investigating the Terra staff started making rounds yesterday. The authorities suspect that Do Kwon, Terraform Labs’ co-founder was aware of the faulty design of UST, according to a former member of the firm.

The committee will be an expansion and reorganization of an already existing body watching over digital assets and is expected to intensify policy effectiveness by streamlining the government’s oversight on crypto.

As per a translated version of the original Korean report, Hwang Seok-jin, a member of the Special Committee on Virtual Assets and a professor at Dongguk University has advised that “a ministry should be established to protect digital asset investors at the same level of stock investor protection.”

The professor even compared Korea’s daily crypto trading volume with the Kosdaq stock exchange, suggesting again that the industry must be treated in a similar fashion as traditional equities.

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