This call to action from South Korean authorities could be in the wake of efforts to not let anything like Terra (LUNA) collapse, happen again
As per the local media reports, the Financial Supervisory Service of South Korea asked about 157 payment service gateways to avail information regarding their services. The information that is asked to reveal includes disclosing digital payments and their further plans. However, according to the FSS reports that no more than six payment gateways have digital assets.
Now the request from South Korean Authorities comes only after a few days of the government’s announcement that it is going to launch a Digital Assets Committee. This is being treated as a responsive action of the government to the Terra network’s recent fall that has left many people with losses of billions.
According to available information, new guidelines will be there for the crypto industry that would include the screening criteria before any new asset’s listing, trade and market monitoring, disclosure standards, etc. Another positive initiative is top crypto exchanges in the region have also formed their own committees so that another Terra crashlike event could be prevented.
On top of that, the Financial Supervisory Service had organized a remote meeting with several other financial regulators across the Asia-Pacific region. The meeting included authorities from Japan, China, and Australia that were hosted by the FSS. A South Korean Representative during the meeting said that there is a need for regulations for cryptocurrency, expansion of existing regulatory framework, and disciplinary actions.
All these moves from regulatory authorities came in the wake of Terra’s (LUNA) collapse impact, where although several investors have already coped up and moved on authorities across the world have taken it as a wake-up call that asks for tightening the regulations around cryptocurrencies.
Along with such efforts, South Korean authorities are also indulging in investigations on Terraform labs. Reports are that the joint financial and services team for investigation of Seoul Southern District Prosecutor Office has summoned every employee from Terraform Labs. Regulators are seeking if there are any signs of price manipulations done intentionally and they believe that the company already knew that sooner or later the collapse would happen.
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Source: https://www.thecoinrepublic.com/2022/06/05/how-south-korea-authorities-are-looking-to-intensify-crypto-regulations-in-the-region/