The Terra ecosystemโs rise and fall has had major consequences all around the world, but thereโs no doubt that South Korea, the birthplace of itsโ creator, was the most concerned country of them all.
Amid signs that Terraform Labs co-founder Do Kwon was facing legal trouble in South Korea, the countryโs ruling party announced Tuesday that it will launch a new Digital Asset Committee in early June, according to local news outlet NewsPim.
According to the report, the committee will serve as a watchdog over the crypto industry and will be responsible for policy preparation and supervision โ that is, until the forthcoming Framework Act for Digital Assets is enacted and a formal government entity devoted to crypto is established.
The committee is an expansion and reorganization of an existing body overseeing virtual assets and is expected to enhance policy effectiveness by streamlining the governmentโs oversight efforts on crypto.
The Terra (LUNA) crash takes another remarkable turn.
Legal documents have revealed the liquidation of two South Korean offices and the dissolution of the Terraform Labs Korea corporation in the days preceding the dual currency collapse. https://t.co/hjEb1rXV4q
โ Cointelegraph (@Cointelegraph) May 21, 2022
Related: Do Kwon summoned to parliamentary hearing following UST and LUNA crash
According to a translated version of the original report, which appeared in Korean, Hwang Seok-jin, a professor at Dongguk University and a member of the Special Committee on Virtual Assets, suggested that โA ministry should be established to protect digital asset investors at the same level of stock investor protection.โ
The professor also compared the countryโs daily cryptocurrency trading volume to that of the KOSDAQ stock exchange, suggesting once again that the industry should be treated in a similar fashion as traditional equities.
