As per local media sources, South Korea is proposing to implement crypto regulations as soon as June.
A committee for digital assets will be established in the country to act as a “control tower” for the space. Until the government is able to create basic policies on digital assets, the committee will look after all the rules and regulations
The recent Terra crash has put light on increased calls for regulation. Hence, the government has now accelerated attempts to pass crypto regulations.
South Korean Watchdog By June
The committee will take place during the last week of June, as per the South Korean news outlet, NewsPim reports. The government has accelerated crypto regulation in response to the Terra crisis, and there have been requests for crypto investors to have the same level of safety as equities.
The committee will keep an eye on the markets and set standards for listing, information, and market regulation. There will also be a consultation received from five major crypto exchanges in South Korea: Upbit, Bithumb, Coinone, Cobit, and Gopax.
Despite the government’s efforts to intensify crypto regulation, basic regulations will take at least a year to pass. In the meantime, the government may update existing financial disclosure requirements to reflect cryptocurrency.
Terra Crash See Aggressive Crypto Regulations
According to previous reports, South Korea is considering tighter crypto laws after Terra collapsed.
Also, there is an intensified probe into the crash by the government. This move bought the Terraform Labs employees to the court.
The desire for increased regulations is the result of President Yoon Suk-campaign yeol’s promises. The President-elect was campaigning on pro-crypto regulation with a surge in popularity.
After the Terra fiasco, South Korea isn’t the only country lobbying for crypto regulation. Top European and American officials have urged for a more active presence in space.