The Korean Government Will Set Up a Digital Assets Committee Because of the Terra’s Bankruptcy

Local reports confirmed that after the collapse of Terra, the Korean government will set up a digital assets committee this month. It is reported that in order to better protect investors and tighten market supervision, the committee will integrate the work of the planning and finance committees, science and technology, information and communication, personal information protection and other ministries and commissions.

An official of the ruling party also told the newspaper that “the launch of the digital assets committee will be carried out immediately after the new financial chairman takes office” and “we expect it to be carried out in the last week of June.”

South Korea Will Have the First Cryptocurrency Supervisor

The translated report said, “there has been a lot of discussion about a special government organization as a control tower, but this is the first time to officially confirm the launch of the digital assets committee”.

At the same time, the domestic authorities investigated the terraform laboratory and Luna CEO do Kwon shortly after the ‘algorithm’ stable coin was blown. It is reported that investigators recently summoned former employees and developers of Luna ecosystem. The latest report also highlighted that investors had made additional charges against the co founders, and 76 victims had sought redress.

In other words, the upcoming committee is expected to implement policies in the virtual asset industry before the introduction of the legal framework. It is said that some of the tasks of the Committee include formulating listing standards, monitoring unfair trade practices, reformulating disclosure systems, and investor protection measures.

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Will Luna 2.0 be a Repeated Plot?

As the authorities also investigated the bankruptcy and outlined stricter regulatory standards, the volatility of Luna 2.0 has been concerned by the market. Fadi aboualfa, research director of copper, a cryptocurrency brokerage, once told Bloomberg: “this is a pure gambling that cryptocurrency has never seen before.”.

It is worth noting that several exchanges have listed the token in advance before the start of airdrop in the community. Jesse Powell, CEO of Kraken, said that the listing of Luna 2.0 was due to “customer needs” and “listing is not a recognition.” Huobi also supported the listing and told the media: “for users who hold Luna 1.0 on the platform, the airdrop of Luna 2.0 can ideally help make up for the losses in previous events.”