Following Terra Collapse, South Korea Plans New Crypto Oversight Board: Report

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The rise and fall of the Terra ecosystem had major consequences around the world, but there is no doubt that South Korea, the birthplace of its creator, was the most affected country of all.

Amid signs that Terraform Labs co-founder Do Kwon was facing legal issues in South Korea, the country’s ruling party announced on Tuesday that it would launch a new digital assets committee in early June, according to local news outlet NewsPim.

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According to the report, the committee will serve as a watchdog on the crypto industry and be responsible for preparing and overseeing policy – ​​that is, until the next Framework Law on Cryptocurrency. digital assets be enacted and a formal government entity dedicated to crypto established.

The committee is an extension and revamp of an existing body overseeing virtual assets and is expected to improve policy effectiveness by streamlining government oversight efforts on crypto.

Related: Do Kwon summoned to parliamentary hearing after UST and LUNA crash

According to a translated version of the original report, which appeared in Korean, Hwang Seok-jin, a professor at Dongguk University and a member of the Special Committee on Virtual Assets, suggested that “a ministry should be established to protect investors from digital assets to the same level of protection as equity investors.

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The professor also compared the country’s daily cryptocurrency trading volume to that of the KOSDAQ exchange, again suggesting that the industry should be treated the same as traditional stocks.