South Korea to Form Provisional Digital Assets Committee

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After the default of the Terra project, the South Korean authorities decided to form a Committee by the end of JuneDigital Assets, responsible for protecting cryptocurrency investors.

The Committee will overseethe crypto industry until the pending Digital Assets Act is passed, and the government creates aThe Committee willcreated through the expansion and reorganization of the existing Ad Hoc Committee on Virtual Assets, following the inauguration of the new Chair of the Financial Services Commission. 

The supervisory authority will set criteria for the listing of cryptocurrencies, monitor unfair trading practices, monitor investor protection measures, and perform other tasks.

Hwang Seok-jin, a professor at Dongguk University and a member of the Special Committee on Virtual Assets, noted that the daily volume of cryptocurrency transactions in South Korea isIt averages about 11.3 trillion won (about $9 billion), which is similar to the trading volume of the stock market.Therefore, cryptocurrency investors, like stock traders, should be protected fromcrypto companies engaged in illegal activities. 

According to Hwang Seok-jin, the creation of a temporary supervisory body will allowIt should be noted that the collapse of UST and LUNA affected almost 280,000 South Korean citizens.

In May, local officials and representatives of the crypto business agreed during a meeting to develop rules to protect investors and involve law enforcement agencies in overseeing the activities of cryptocurrency exchanges.A little earlier, the Financial Services Commission of South Korea, against the backdrop of a tense situation in the stablecoin market, proposed to register crypto companies depending on thetheir level of risk to investors. 

Immediately after the collapse of Terra, South Korea's Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) began conducting a massive inspection of local cryptocurrency trading platforms.