Report: South Korea Plans New Crypto Regulatory Commission After Terra Crash

The rise and fall of the Terra ecosystem has had major ramifications around the world, but South Korea, the birthplace of its founder, is without a doubt the country that gets the most attention.

According to South Korean news outlet NewsPim, there are indications that Terraform Labs co-founder Do Kwon is facing legal action in South Korea. South Korea’s ruling party announced Tuesday that a new digital asset committee will be established in early June.

According to the report, the committee will serve as the regulator for the South Korean crypto industry and will be responsible for policy preparation and regulation — that is, pending the imminent enactment of the Digital Assets Framework Act and the establishment of a formal government entity dedicated to cryptocurrencies. start its regulation.

The committee, an expansion and reorganization of the existing virtual asset regulator, is expected to improve policy effectiveness by simplifying the government's oversight of cryptocurrencies.

According to the Korean translation of the report, Hwang Seok-jin, a virtual asset special committee and a professor at Dongguk University, suggested that "a digital asset investor protection department should be established at the same level as stock investor protection."

He also compared South Korea's cryptocurrency daily trading volume with KOSDAQ, again suggesting that the cryptocurrency industry should be treated like traditional stocks.