The crypto industry of South Korea will soon get its crypto-dedicated regulatory body, which will govern under the control of FSC agency.
In the past, South Korean citizens showed huge inclination toward the crypto industry and also as a result of it, Korean government agencies introduced highly strict rules & laws to keep the citizens away from crypto-related frauds. At the moment, only 4 crypto exchanges are allowed to provide full crypto- fait paired trade, while the other 2 dozen crypto exchanges are allowed to provide only crypto-crypto pair trade.
When the crypto market was under extreme volatility in May of this year then that resulted in the collapse of the Terra blockchain ecosystem, where both of the native tokens of Terra (namely Luna & Stablecoin UST) touched the ground value. After the collapse of Terra, the government agencies of South Korea decided to introduce a separate dedicated agency for the crypto Industry.
The name of the agency is Digital Assets Committee (literal English translation) and the setup work of this agency is going on fastly. The new crypto regulatory committee will work closely with the Financial Services Committee (FSC) and the Financial Supervisory Service (FSS).
At present, the Financial Intelligence Unit (FIU), a subsidiary of the FSC agency, governs the crypto companies in South Korea. But here it is not clear whether the new agency will acquire the power of FIU or not.
According to available reports, the new committee will be launched by the end of this month. And also the founding members of the future committee have been appointed. Initially, this committee was expected to operate its work independently but the majority of the reports noted that it will work under the control of FSC’s FIU.
Terra collapse and results
No doubt that the collapse of the Terra project resulted in a huge loss for the majority of the crypto Investors but in particular this incident acted as a catalyst to impose pressure on the government agencies to bring more strict regulatory standards to ensure that running active crypto companies or projects are genuine and their business model also ideal, in favor of crypto Investors.