South Korean Government to Form Digital Assets Committee in Response to Terra Collapse: Report

The committee will provide criteria for the listing of coins by exchanges, introduce investor protections and monitor unfair trading.

AccessTimeIconJun 1, 2022 at 3:16 p.m. UTC
Updated Jun 1, 2022 at 3:44 p.m. UTC

Jamie Crawley is a CoinDesk news reporter based in London.

The South Korean government plans to form a committee specifically to oversee the digital assets market following the collapse of Terra, according to a report by news outlet NewsPim.

  • The Digital Assets Committee, which could be launched this month, will provide criteria for the listing of coins by exchanges, introduce investor protections measures and monitor unfair trading.
  • Following the collapse of Terra last month, demands were raised in South Korea for the establishment of a body with specific oversight of the digital assets industry to provide protections comparable to what stock market investors have.
  • At present, supervision is handled by a range of government departments and watchdogs, such as the Ministry of Strategy and Finance, the Financial Services Commission and the Ministry of Science and ICT (information and communications technolgy).
  • Calls for increased oversight of the crypto industry were raised at a National Assembly emergency seminar last week. "We need to make exchanges play their proper role, and toward that end it is crucial for watchdogs to supervise them thoroughly," Rep. Sung Il-jong of the ruling People Power Party said.
  • Around 280,000 South Koreans are believed to have been victims of the plunge in the value of the Terra stablecoin UST and its sister token LUNA.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Jamie Crawley is a CoinDesk news reporter based in London.

CoinDesk - Unknown

Jamie Crawley is a CoinDesk news reporter based in London.