South Korea Will Enact Legislation To Improve the Safety and Regulation of Crypto

Vignesh Karunanidhi
South Korea Will Enact Legislation To Improve the Safety and Regulation of Crypto
Source: CryptoDisrupt

The ruling People Power party of South Korea is planning to enact a law on blockchain platforms to provide better crypto regulation. The decision to enact the law is also to protect investors, as per the reports produced by the chief policymaker of the party.

“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 organized.”

Rep. Sung Il-jong of the PPP said during meeting on virtual assets

South Korea’s decision follows the fall of TerraUSD

The decision comes following the collapse of TerraUSD and its sister coin, LUNA, which resulted in enormous losses for many investors around the world, highlighting the necessity to better regulate the fast-growing industry and safeguard investors from extreme volatility.

The catastrophic fall of the Terra ecosystem witnessed over $40 billion in user funds vanishing in the span of days. The PPP and South Korea’s government officials requested voluntary regulatory steps from the cryptocurrency sector at the meeting.

Source: Bitcoinist

“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.”

Lee Bok-hyun, Financial Supervisory Service Chief

Such a necessity for urgent regulations urged the major five cryptocurrency exchange heads to discuss and decide to launch a joint body to evaluate the market situation and regulatory measures. The exchange heads are also planning to lay out certain standards for the listing and delisting of new coins. They also plan to set up a trading warning system along with regular risk assessments on crypto and to provide the data to investors.

The Financial Services Commission of South Korea analyzed that the cryptocurrency market is worth over $42.9 billion in the country.