The collapse of Terra may have hastened the fear of digital assets as South Korean government creates a supervision and control entity.
The Terra event has had major consequences all over the world, but in South Korea, the birthplace of its maker is the most concerned of all.
There have been signs that the Terraform Labs co-creator, Do Kwon, is facing legal trouble in South Korea. The country’s ruling party announced Tuesday that it would launch a new Digital Asset Committee at the beginning of June, according to NewsPim, a local news outlet.
According to the report, the committee will serve as a watchdog over the crypto industry and will be responsible for policy preparation and supervision. This is until the forthcoming Framework Act for Digital Assets is enacted and a formal government entity devoted to crypto is established.
The committee is an expansion and reorganization of an existing body overseeing digital assets and is expected to enhance policy effectiveness by streamlining the government’s oversight efforts on crypto.
The original report appeared in a Korean News Paper, and in it Hwang Seok-jin, a professor at Donggul University, who is also a member of the Special Committee on Virtual Assets, stated that “a ministry should be established to protect digital asset investors at the same level of stock investor protection.”
Hwang also compared South Korea’s daily cryptocurrency trading volume to the Kosdaq stock exchange and suggested that once again the industry should be treated in a similar fashion as traditional equities.