The South Korean Government’s Response to the Terra Luna Case
The case of the falling value of the crypto coin, Terra LUNA, made the South Korean government take further actions, such as creating a special committee that will be inaugurated this month. The South Korean crypto industry has discussed the Terra Luna case a lot, such as investors losing money to the loss of their savings.
South Korea Digital Asset Committee
The South Korean authorities have responded to a case involving the Terra LUNA coin ecosystem and have launched an investigation into the company behind it, Terraform Labs. The Terra LUNA case makes the authorities focus more on the scope of digital assets, especially for the protection of investors involved in it.
Furthermore, the Terra LUNA case, which is quite complex and has a systematic impact on the South Korean crypto industry, is currently being investigated. According to a Newspim report published by Watcher News, the South Korean Digital Assets Committee will be launched by the party that is leading at this time.
The existence of this committee was formed to protect digital asset investors at the same level as the protection of stock investors, then the Committee on the other hand will help the government to improve their policies in the crypto industry and streamline supervision of digital assets in the future.
Restoration of the Terra Ecosystem is carried out
The new Terra network, Terra 2.0 still has discrepancies where the airdrop of LUNA 2.0 tokens is proving to be uneven. The post on reddit became a discussion regarding the unequal distribution of LUNA 2.0 tokens between one another. This was acknowledged by the Terra development team and they responded by saying they were working on solving the problem.
According to observers, seeing Terra’s forking is a hasty step, seeing immature preparations can be a new problem because the steps seem hasty.
Besides that, there are related issues that Do Kwon is developing a model of a new stablecoin that will run on the Terra 2.0 network. But there is no clear evidence regarding this and it has not been confirmed by Terraform Labs CEO Do Kwon.
Effects of Terra Luna Case
The South Korean government is preparing to set up a new regulatory body to oversee the crypto sector in response to the Terra (LUNA) and Terra USD (UST) failures, a body known as the Digital Assets Committee set to launch as early as early next month. This committee operates separately from South Korea’s Financial Services Committee (FSC) and Financial Oversight Services (FSS).
The FSC and the Financial Intelligence Unit (FIU) are currently in charge of overseeing the crypto sector. The FSC handles crypto in general and forms policy, while the FIU oversees crypto exchanges. The new committee will be the first regulator in the world to specifically address cryptocurrencies, and the transfer of responsibility from the FSC and FIU can be carried out in stages.
The committee prioritizes the creation of the Digital Asset Law. The bill, which is still in the process of being worked on, is the result of President Yoon Seok-Yeol’s thinking.
Purpose of the Crypto Asset Committee
A spokesman for the People’s Power Party said it would launch the Crypto Assets Committee soon after President Yoon appointed the Committee Chair. The party formed the committee in response to the LUNA incident, the Digital Assets Committee is expected to help minimize chaos in the crypto asset market and strengthen policy effectiveness by bringing together government agencies currently in charge of overseeing crypto.
The Digital Asset Commission is required to create a guide for the crypto exchange industry. The committee will focus on the areas of listing and delisting criteria, monitoring and token warning systems, monitoring unfair or insider trading practices, trading, transparency and investor protection measures.