According to local media reports, South Korea plans to launch a digital asset watchdog by June.
The country will set up a Digital Assets Committee to serve as a “control tower” for space. The committee will oversee the regulation of space until the government is able to draft fundamental legislation on digital assets.
The government has also accelerated its efforts to pass cryptocurrency regulation following the recent Terra crash, which has led to an increasing number of regulatory measures.
South Korea to introduce task force by June
According to a report by South Korea’s NewsPim news agency, an official said the committee would be introduced in the last week of June.
The Terra crash led the government to tighten regulation of cryptocurrencies and also called for crypto investors to have the same level of protection as stocks.
The committee monitors the markets and establishes guidelines on listing, disclosure, and investor protection. It will also consult a panel made up of the top five South Korean cryptocurrency exchanges – Upbit, Bithumb, Coinone, Cobit, and Gopax.
Even as the government ramps up the regulation of cryptocurrencies, it is expected to take at least a year to enact basic space laws. In the meantime, the government may amend existing financial disclosure laws to accommodate cryptocurrencies.
Terra’s plunge will introduce more cryptocurrency regulation
Previous reports have indicated that South Korea is already considering tougher cryptocurrency regulations in response to the Terra crash.
The government has also stepped up its investigation into the accident, recently taking Terraform Labs officials to court.
The push for more regulation somewhat contradicts promises made by newly elected President Yoon Suk-yeol. The president-elect has pushed for pro-crypto regulation amid the space’s growing popularity in South Korea.
But South Korea isn’t the only country pushing for cryptocurrency regulation in the wake of the Terra disaster. Senior officials in Europe and the United States have called for a tougher stance on space.
