The tragic collapse of Terra may have accelerated the early June deployment of a digital asset monitoring and control agency

In response to reports that Do Kwon, co-founder of Terraform Labs, was facing legal issues in South Korea, the country's governing party stated on Tuesday that it will organise a new Digital Asset Committee in early June, according to NewsPim.

According to multiple sources, the committee will function as a watchdog over the crypto business and will be responsible for policy development and oversight until the Framework Act for Digital Assets is approved and a permanent government institution dedicated to crypto is formed.

The committee is an enlargement and reform of an existing group responsible for supervising digital assets, and it is anticipated to improve policy efficacy by simplifying the government's supervision activities on cryptocurrencies.

Professor Hwang Seok-jin of Dongguk University and member of the Special Committee on Virtual Assets said, according to a translated version of the original Korean source, that

a ministry should be established to protect digital asset investors at the same level of stock investor protection.

The professor also contrasted the country's daily trading activity in cryptocurrencies to that of the Kosdaq stock market, arguing once further that the business should be regulated similarly to regular stocks.