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South Korea has accelerated the creation of the Digital Assets Committee after the recent collapse of UST and LUNA tokens
The Digital Assets Committee, the world’s first ministerial-level regulator, will begin work in June, according to the Korean edition of newspim.com. The South Korean government will accelerate the launch of a new body to oversee the crypto sector as a direct response to the UST and LUNA incident.
The committee will operate separately from the existing Financial Services Committee (FSC) and the Financial Supervisory Authority (FSS), the country’s two main financial regulators. The FSC deals with the sector as a whole and helps shape policy, while the FSS oversees crypto exchanges.
On May 31, the Government will expand and reorganize the existing branches of state bodies as part of the Committee on Digital Assets, the media reported, citing sources.
“The work of the Digital Assets Committee will begin immediately after the inauguration of the new chairman of the Financial Services Commission,” said a representative of the ruling party.
The committee will be one of the first specialized crypto regulatory bodies in the world and will take sole responsibility for overseeing the entire sector, although the transfer of powers from the FSC and FIU will be carried out in stages.
Last week, the country’s top five exchanges — Upbit, Bithumb, Coinone, Korbit and Gopax — announced that they were forming a joint response council after the luna crash. Party sources said the commission was likely to consult the new body in some capacity.
The collapse of USTC (formerly UST), the third largest stablecoin supported by Terra Blockchain, began on May 8. The cryptocurrency lost its peg to the US dollar after a one-time token sale worth about $ 300 million. at the moment, the price of the stablecoin is about $ 0.03.
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