On June 13, The chief policymaker Rep. Sung Il-jong announced that South Korean ruling People Power Party intends to pass legislation on blockchain platforms in an attempt to improve crypto regulation and to protect investors. The step is taken in consideration after the collapse of TerraUSD, and its sister coin Luna.
Rep. Sung Il-jong chief policy maker, stated:
“We are thinking of making a law on blockchain-based platforms. Some parts are mentioned in the special financial transaction law, but overall it’s not organised.”
This step is taken in consideration after the collapse of TerraUSD, and its sister coin Luna which resulted in huge failures for several investors around the world, highlighting the need to effectively regulate the rapidly growing market and protect investors from excessive volatility.
Over $40 billion in user funds vanished in a matter of days as a result of the Terra ecosystem’s catastrophic collapse. During the meeting, the PPP and South Korean government officials requested voluntary regulatory steps from the cryptocurrency sector.
The chief of the Financial Supervisory Service, Lee Bok-hyun expressed:
“In order for the virtual asset market to have responsible growth, establishing a reasonable regulation system is important. But considering its complexity and unpredictable environment, setting a voluntary regulatory system through the active participation of private experts needs to be emphasized.”
Because of the urgent need for regulations, the heads of the major five cryptocurrency exchanges met and decided to form a joint body to assess the market situation and regulatory measures. The exchange heads also intend to establish criteria for the listing and delisting of new coins. They also intend to set up a trading warning system, as well as conduct regular risk assessments on cryptocurrency, and to make the data available to investors.
