In wake of Terra collapse, South Korea plans new crypto oversight committee: Report

The infamous collapse of Terra may have hastened the creation of a supervision and control entity for virtual assets, which is set to launch in early June.

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

Amid signs that Terraform Labs co-founder Do Kwon was facing legal trouble in South Korea, the country’s ruling party announced Tuesday that it will launch a new Digital Asset Committee in early June, according to local news outlet NewsPim.

According to the report, the committee will serve as a watchdog over the crypto industry and will be responsible for policy preparation and supervision — that is, until the forthcoming Framework Act for Digital Assets is enacted and a formal government entity devoted to crypto is established.

The committee is an expansion and reorganization of an existing body overseeing virtual assets and is expected to enhance policy effectiveness by streamlining the government’s oversight efforts on crypto.

The Terra (LUNA) crash takes another remarkable turn.

Legal documents have revealed the liquidation of two South Korean offices and the dissolution of the Terraform Labs Korea corporation in the days preceding the dual currency collapse. https://t.co/hjEb1rXV4q

— Cointelegraph (@Cointelegraph) May 21, 2022

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 digital asset investors at the same level of stock investor protection.”

The professor also compared the country’s daily cryptocurrency trading volume to that of the KOSDAQ stock exchange, suggesting once again that the industry should be treated in a similar fashion as traditional equities.