South Korea looks set to establish a Digital Assets Committee which will serve as the supervisory authority for crypto
South Korea plans to set up a supervisory authority on crypto in June
The Digital Assets Committee, which will function as the supervisory and controlling authority for virtual assets, including cryptocurrencies, will be launched as early as June, according to NewsPim.
Until the Framework Act on Digital Assets is enacted and a specialized government body is established, the committee is expected to be in charge of policy development and oversight of the virtual asset business.
According to a Korean official quoted by NewsPim, the Digital Asset Committee would be established soon after the new head of the Financial Services Commission is installed, possibly as early as the last week of June.
Intentions for the digital asset committee
The decision to form the Digital Asset Committee was made on the spur of the moment, as the Terra (LUNA) crash highlighted the necessity for a trustworthy authority to represent the virtual asset business.
By combining the South Korea system of competent ministries into one state body, the government is intended to reduce market confusion and improve policy efforts.
The Digital Asset Committee intends to draft market guidelines, including listing review criteria, significant item classification, unfair trade monitoring, a transparency system, and investor protection measures.
Furthermore, five prominent Korean exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, would form a joint consultative body to the aforementioned committee in order to prevent a repeat of the LUNA issue and to express their own views.