More Crypto Regulations Coming to South Korea Due to Terra Collapse, Government Signify

 

                                                               Source: Flicker

The aftermath of the Terra(LUNA) and terraUSD (UST) crash could bring further administrative tests for the crypto sector in South Korea - with trades set to go under the same test as TerraForm Labs and its founder and CEO Do Kwon. Is.

KBS detailed that the People's Power Party - the second largest party in parliament and the party of President Eun Suk-yol - and the public authority held a joint "crisis inspection meeting for virtual assets" in the National Assembly on 24 May.

The gathering ended with the announcement that the public authority would expect to revise existing crypto guidelines – and likely ignore the way Rundown and Delist trade coins.

So far, posting approaches are built on the watchfulness of trades. The situation is very unique in Japan to the east at sea, where token posting applications must be backed by an automated body.

Trades also ignited controversy in South Korea last year, when late-night delisting smothered some financial backers.

Anyway, the Terra breakdown has turned into a provocative episode in South Korea – and surprisingly, the crypto-sharp administration is bound to follow through.

Seong Il-jong, chairman of the Policy Committee of the People's Power Party, was quoted as expressing that "since the crypto sector" is "another business", "there may be circumstances by which "some" rules are not established. Huh."

Seong said the public authority had sent a survey of "can we dictate any destabilizing effects" on "various issues" in the crypto market or space.

Also, this audit may signal changes to come sooner rather than later. Yoon recently discussed creating a more favourable for crypto regulation that would give business privileges to crypto firms and further work with developments in the field. However, the gathering's participants agreed that such a bill would provide an opportunity for planning and later going through the National Assembly, with further guidelines likely to be passed very quickly – and amendments to the current Specific Financial Transaction Information Act. will appear as

Another Board of Trustees boss was quoted as expressing that while the previously mentioned Act was "intended solely to prevent tax evasion", the public authority was "generally careful that [the law] in trades restrictions with respect to the management or control of the

 

He added:

“I think the situation has changed […since] the [LUNA/UST] crash.”

Meanwhile, a core academic call for more crypto guidelines in an administration coordinated course on the crash – guaranteeing that the size of the domestic crypto market is so extraordinary that a single trade failure could cause a shockwave that could affect the entire public economy. can do

The Business Post cited Jean In-tae, a teacher in the mathematics department at The Catholic University of Korea, as saying that the degree of "exchanges heavily on shopper risk trades for cryptoassets" was "expanding".

 

He added:

“If an exchange goes bankrupt, [that would be a problem]. Exchanges have grown to such an extent that it means that such an event would shake the South Korean economy. As such, more fundamental countermeasures against such operational risks are necessary. Adequate regulation helps to promote the industry by making the market transparent and reducing a variety of risks.”

”Geon additionally believed that Terra "calculated" "brought issues" according to a "financial backer security perspective".

Another intellectual at Dongguk University's Graduate School of International Information Security, Hwang Sok-jin, said that the luna and other terraform coins "had no insurance and were created through exchange and market influence processes".

Hwang argued that it is important to create a "direct posting and delisting framework" at present.

That's what they guaranteed "as opposed to holding a countermeasure gathering after a particular issue, for example, the critical Luna episode, to exclude a dedicated body, would prevent such situations and respond judiciously."