The dramatic collapse of TeraUSD and its sister token Luna Classic (LUNA) has prompted South Korean policymakers to call for faster crypto regulations.
call for draft regulation
According to a new report, top officials have now asked cryptocurrency exchanges to formulate guidelines regarding listing and delisting of digital tokens to protect investors from another debacle.
Yoon Chang-hyun, a legislator who heads the ruling People’s Power Party’s virtual assets committee, has called for a second meeting next week with domestic cryptocurrency exchanges Upbit, Bithumb, Coinone, Korbit and GoPax.
The politician revealed in an interview that the main objective of the meeting is to agree on a draft non-binding guidelines. South Korean policymakers are looking to implement a self-regulatory system similar to that of Japan.
The official also said that the cryptocurrency industry had been neglected “for too long without order and discipline”, highlighting its “shortcomings” in comparison to traditional finance.
According to Bloomberg sources familiar with the matter, much of the details of the draft guidelines have not been disclosed, but much of the effort is likely to be focused on employing stricter reporting requirements to increase transparency rather than tightening business processes. .
Representatives of four of the five South Korean cryptocurrency exchanges have so far confirmed the second meeting, but said they are not aware of its agenda. The FSC has also not been able to comment on the plans for the meeting, but it has claimed that the crypto platform will issue official announcements if any guidelines are established.
digital asset committee
Soon after the high-profile implantation of the Terra Ecosystem token, Chang-hyun called for a parliamentary hearing held on May 24. He blamed five crypto exchanges for their behavior during the crash. According to data from the country’s financial regulator, the Financial Services Commission, about 280,000 South Koreans had invested in Luna.
With Terraform Labs employees under scrutiny by the country’s authorities, the ruling party wants to start a new digital assets committee to serve as a “control tower” for the region to better protect stablecoin investors. The committee is due to start in the last week of June after the inauguration of the new finance chairman.
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