A Digital Assets Committee was announced in South Korea, and an inquiry was initiated, as well as meetings with financial regulators from Asia-Pacific
The Financial Supervisory Service (FSS) is South Korea's financial regulator, operating under the Financial Services Commission (FSC); both are government entities.
Local news site Money Today Co. said that the FSS recently required reports from 157 payment gateways on any crypto-related services, future plans, and disclosure of digital assets. However, according to an FSS investigation, just six had digital assets.
Although the FSS is presently the principal financial regulator, South Korea stated on May 31, 2022 that the Digital Assets Committee would soon be established. According to the release, this is a temporary solution to offer structure to the business of virtual assets after the Terra catastrophe.
Related: South Korean officials are investigating the Terra crash for indications of deliberate pricing manipulation and other concerns
It states that the standards include screening requirements for newly-listed assets, market monitoring, trade monitoring, a degree of transparency, and other investor safeguards. The country's five largest exchanges seem to be in agreement on the rules and have created their own committee to avoid a repeat of the Terra tragedy.
The FSS announced a virtual conference with other financial supervisory bodies from five Asia-Pacific nations shortly after launching its probe. The Indonesian Financial Supervisory Service held this event, which also featured Australia, China, and Japan.
The discussion discussed global market circumstances, major technologies, and cryptocurrencies. The Korean official underlined the necessity for regulation of cryptocurrencies, disciplinary action regarding virtual assets, and the extension of financial regulatory frameworks.
As reported earlier by various sources and in our earlier article, South Korean authorities initiated an inquiry into Do Kwon on 24th May, 2022, the incident's central protagonist. The Digital Assets Committee will be led by Yoon Chang-Hyeon, head of the People's Strength Virtual Assets Special Committee, who met with the leading exchanges in response.