South Korea is to Create a Committee to Monitor the Crypto Market

According to local media, the authorities in South Korea intend to establish a temporary Digital Assets Committee after the collapse of the Terra ecosystem, which led to the project’s stablecoin UST losing its peg to the US dollar.

The new body will reportedly be formed from the existing Special Committee on Virtual Assets, will be launched this month and will work until the creation of a separate permanent department.

Among other things, the Committee will establish criteria for listing cryptocurrencies, protect investors, monitor the market and unfair trading practices.

An interagency group consisting of prosecutors and financial regulators has been previously created to investigate the collapse of Terra. In addition, at the end of May it became known the Seoul Southern District Prosecutor’s Office had subpoenaed Terraform Labs employees.