South Korea’s regulator, the Financial Services Commission (FSC), is planning on strengthening its global cooperation in a bid to better regulate the cryptocurrency sector, local media reported Tuesday.
South Korea Calls for Global Crypto Alliance
FSC chief deputy Kim So-young told lawmakers during a meeting that the decentralized and anonymous nature of cryptocurrencies makes it important for countries to work together to regulate the asset class.
According to him, South Korea plans to strengthen its cooperation with global organizations to establish a clearer regulatory framework for all types of crypto assets, including stablecoins.
The move comes on the heels of the recent Terra ecosystem drama that saw the catastrophic collapse of UST and LUNA.
The FSC revealed that more than 280,000 LUNA and UST investors in South Korea holding about 33.9 billion won (about $26.8 million) were affected by the Terra crash.
Kim noted that as new types of cryptocurrencies continue to emerge, countries are researching the effects such assets could have on investors and the existing financial and monetary system.
The official said the FSC will work with lawmakers across the country on regulations created to protect investors against risks associated with crypto.
According to the report, South Korea currently has about 13 pending bills on crypto-related matters. At the same time, the country’s Financial Supervisory Service (FSS) said during the meeting that it will conduct an immediate investigation on crypto exchanges in an effort to protect investors.
More Crypto Regulations
Following the recent crypto market crash, regulators around the world have intensified their focus on the industry. Two weeks ago, Janet Yellen, the secretary of the United States Treasury, said it is very important for Congress to pass legislation on digital assets like stablecoins.
Last weekend, European Central Bank (ECB) President Christine Lagarde said that cryptocurrencies are both worthless and risky, and regulators should implement stringent rules to discourage people from investing in the asset class.
Source: https://coinfomania.com/south-korea-calls-for-global-crypto-alliance/#utm_source=rss&%23038;utm_medium=rss&%23038;utm_campaign=south-korea-calls-for-global-crypto-alliance